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63
PGBM 15 Marketing Management Marketing of mobile phones Name: Xiaoqian Ma Student Number: 109998230 [选选选选]

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Page 1: PGBM 15 Marketing Management

Marketing of mobile phones

Name Xiaoqian Ma

Student Number 109998230[选取日期]

Contents

Title ------------------------------------------------------------------------- 2

1 Introduction ----------------------------------------------------------- 2 32 Dynamics and trends of mobile phone market ----------------- 3-9

21 Development of mobile phones --------------------------------------------- 3 4

22 Emergence of smartphones ------------------------------------------------- 5 6

23 Changes of leadership in the mobile phone market -------------------- 6-9

3 The importance of marketing management --------------------- 9-12

4 Marketing of Samsung ----------------------------------------------- 12-17

41 Marketing mix at Samsung -------------------------------------------------- 12 13

42 Samsungrsquos message ------------------------------------------------------------ 13 14

43 Advertising at Samsung ------------------------------------------------------- 14 15

44 Sales promotion at Samsung ------------------------------------------------- 16

45 Sponsorship at Samsung ------------------------------------------------------ 16 17

5 Conclusion -------------------------------------------------------------- 17-19

Reference ------------------------------------------------------------------- 10-25

1 25

Title Marketing of mobile phones

1 Introduction

Over the years all kinds of organisations have been undertaking varies of marketing

activities in order to increase their competitiveness in the market which allows them

to sustain their market shares and achieve organisational goals in the business world

In order to achieve different kinds of objectives all marketers need to work hard to

develop systematic plans to make sure they can be effective In the meantime they

also have to critically evaluate the results of all marketing plans so that they can

continuously identify issues analyse the root causes and find solutions to improve the

effectiveness of all plans Therefore the marketers and the marketing have been

playing an essential role in the organisations

In this paper the writer has chosen mobile phones as a research topic to discuss its

markets and trends in todayrsquos rapid development of technology world In the

meantime the writer has divided this report into three key sections Firstly the writer

discusses the dynamics and trends of the marketing environment of the mobile

phones Secondly the writer discusses the importance of marketing mix and product

innovation in the mobile phone industry Finally assuming as a newly appointed

marketing manager of Samsung smart phones the writer will discuss varied kinds of

2 25

marketing techniques to improve market shares profitability and sustainability of

Samsung At the end there is a conclusion section to summarise the whole report

2 Dynamics and trends of mobile phone market

21 Development of mobile phones

In our real life mobile phone have quite a long history since the first mobile phone

was invented in early 1900rsquos

(httpchroniclingamericalocgovlccnsn850424621906-05-21ed-1seq-7) Despite

of the early invention of mobile phone the commercial used mobile phone did not

become our daily usage until 1970rsquos when Motorolarsquos researchers started developing

the first hand-held mobile phone that can be used on a cellular network (Wall Street

Journal 2009) In light of this it is easy for us to understand that the traditional mobile

phone industry consists two key sections one is the mobile hand-held phone and the

other is the operating network on which the mobile phones can be used

Hence the development of the mobile network has been growing since 1970s and the

first commercial used network was launched by NTT in Japan in 1979

(httpwwwnttcojpindex_ehtml) Since then more countries have launched their

mobile networks such as Denmark Finland Norway and so on In the meantime the

first generation network was developed and used in 1983 This is the so called 1G

3 25

network on which the oldest cellular phone was operated

(httpwwwmsnbcmsncomid7432915nstechnology_and_science-wirelesstfirst-

cell-phone-true-brickT2o-y3mP5JE)

Along with the high demand of the mobile phone market the 2G (second generation)

network technology was launched in Finland in 1991 After ten years the 3G (third

generation) was launched in Japan (httpwwwumtsworldcomumtshistoryhtm)

With the rapid development of the new generation mobile technology the competition

of mobile phone industry has become more intense Both network operators and

mobile phone manufacturers have been investing huge amount of money to develop

new and advanced products to capture more users so that they can be profitable and

sustainable in their businesses

In recent years after the launch of 3G technology and 3G mobile phones it is very

obvious that new generation technology will be necessary for the huge growing

demand for higher speed of data transfer and more applications on the mobile phones

In the meantime the mobile phone manufacturers have also launched new series of

mobile phones to satisfy growing demand of more consumers Thus the mobile phone

industry has been developing very rapidly

22 Emergence of smartphones

4 25

Along with the development of mobile phone internet and personal computing

devices a new internet world emerges ie mobile internet (Funk 2001) In light of

this there is a new name for mobile phones that can effectively access to the internet

ie Smartphone Nowadays smartphones can not only provide users to use traditional

wireless voice talk but also allow them to access to the internet and use varied kinds

of software applications which is very important feature of smartphones that

differentiate themselves from traditional mobile phones

Because of the development of smartphones the whole industry has been changed

rapidly and has attracted great attention of all kinds of business players related to this

industry which includes mobile phone manufacturers internet service firms personal

computing device manufacturers and so on In light of this the smartphone actually

forms a new way of competition in the mobile phone industry Nowadays many

companies have believed that it is important for them to provide services or products

in the smartphone industry in order to create new business opportunities for their

future growth and profitability

There is lots of evidence that the smartphone industry has been rapidly growing For

example according to Gartnerrsquos statistics (2010) there were over 128 billion sets of

mobile phone sold in 2010 per se and the percentage of smartphones accounted for

over 20 of total amount In the meantime the growth of sales of smartphones has

5 25

been over 100 over the past years By 2012 it was estimated that the total sales of

smartphones would be more than those of PCs in the global market In addition the

Gartnerrsquos statistics indicate that by 2014 the total revenues generated from all mobile

devices including smartphones e-books and related services applied on these

devices would be more than US$10 trillion Furthermore by 2015 the total number

of smartphone users would be more than 2 billion based upon the forecasted growth

rate of smartphones and the forecasted declining costs of all kinds of components

From the above it is very obvious that the traditional mobile phones have been

replaced by smartphones in a rapid way Although this trend just started several years

ago when Apple Inc launched its first iPhone in 2007 (wwwapplecom) the speed of

change has convinced the market that the future of mobile phones belongs to

smartphones Accordingly the competition of the industry has become more

complicated and intense because of the emergence of smartphones

23 Changes of leadership in the mobile phone market

There are numerous manufacturers of mobile phones around the world Before 2010

the leading manufacturer of mobile phone is the Nokia According to the Gartnerrsquos

statistics (2010) Nokiarsquos market shares of mobile phones was about 60 of total

global sales during its peak performance Nokia has long been considered as a leader

6 25

in the low-end markets where it has dominant positions and markets are mostly in the

developing countries Despite of its strong positions in those low-end markets

statistics show that Nokiarsquos market shares in those markets have decreased to less

than 30 by 2010

In fact Symbian is Nokiarsquos operating system that has long been used on many

smartphones According to Gartnerrsquos statistics (2010) over 60 of all kinds of

smartphones used the Symbian as their operating systems in the year of 2007 when

the Windows operating system only accounted for about 11 of the total market

shares and the iPhone operating system only about 6 of total amount At the time

Nokia was the true leader in the smartphone industry in which it alone had more than

50 of the market shares all around the world

However Nokia has been losing its leadership position in the smartphone industry

according to Gartnerrsquos statistics (2010) By 2010 there were only about 36 of all

kinds smartphones using its Symbian as the operating system while Googlersquos

Android accounted for about 26 of the total and iPhone accounted for about 16 of

total

When it comes to iPhone it is the first real smartphone launched in the market in

2007 which in fact has great impact on the whole mobile phone industry Applersquos

7 25

iPhone indeed recreates the mobile phone standards in the history It does not only

provide an easy and friendly user environment that allows all to browse internet on

the iPhone but also it has leverage all different systems in the Apple devices and

applications which has namely been called the ecosystem According to Salazar et al

(2010) the key reason why iPhone has great usersrsquo acception and adoption is because

of innovations on iPhone in many ways From a media and digital device provider to a

smartphone provider Apple has an unique ecosystem that includes several platforms

on which iPhone can leverage successfully This has in fact great barrier for other

competitors to follow and react to it (Cusmano 2010) Therefore the launch of

iPhone has indeed taken away many market shares of key players in the industry

including the old time leader ie Nokia

As for Google it has its own unique business model as well which is different from

others It did not enter the smartphone industry until it acquired the operating system

ie Android Since then the Google has successfully entered the smartphone industry

by allowing all software developers to play on the Android system Because the

Android is a open system it has then attracted not only software developers but also

weaker mobile phone manufacturers that have great intention to develop their own

competitive smartphone products which include Samsung With the quick expansion

of Android system the Google rapidly captures the market shares in the smartphone

industry which accounted for about 25 of the total in 2010 With its Android the

8 25

Google has won the confidence of most mobile phone manufacturers around the

world according to the statistics of the Canalys (2010)

3 The importance of marketing management

The marketing guru Philip Kotler has contributed to the development of marketing

management in our modern world According to his early publications the marketing

definition is the human activity directed at satisfying needs and wants through an

exchange process (Kotler 1980) Along with the development of the market and

management theories Kotler and other marketing professionals added more meanings

into the definition of the marketing Marketing is a social managerial process by

which individuals and groups obtain what they need and want through creating and

exchanging products and value with others (Kotler et al 1999)

In fact the American Marketing Association has its own definition of marketing

which considered marketing being ldquoan organisational function and a set of processes

for creating communicating and delivering value to customers and for managing

customer relationships in ways that benefit the organisation and its stakeholdersrdquo

There is no doubt that marketing has long been playing an essential role of developing

all kinds of businesses for all organisations Without proper marketing management

all kinds of businesses would have difficulty in developing effective marketing plans

9 25

implementing their marketing activities to capture more customers and market shares

and eventually helping to improve their business performance in our rapidly-changing

market environment around the world The global market has been changing so

quickly that leads to more uncertainties than ever before In light of this it is very

critical for all kinds of businesses to have effective marketing management in place to

help organisations to respond and react to the ever-changing environment

There are two kinds of environment for all kinds of businesses ie external and

internal environment Both of them can have great impact on all business

organizations the market places where they run businesses and the co-relationship

among all factors (Jobber 2006) In light of this it is very important Thus

understanding environment and using the environment scanning are important

activities for all marketers and organizations Denis A at al (2001) argued that the

marketing environment factors are often referred to as Social Technological

Economic and Political varibles (PEST) In reality the PEST framework for

environmental auditing has been widely used in business work

After analysis the external environment marketers can make decisions and take

relevant approaches to allow organizations to identify and capitalize opportunities

(Kotler et al 1999) Based upon this marketers can then conduct necessary research to

indentify the market segmentations ldquoMarketing research is an essential tool for the

10 25

marketing manager in helping to define and locate market segments and understand

their needs and wantsrdquo (Jobber 2006)

Fill (2009) argues that ldquosegmentation is necessary because a single product is unlikely

to meet the needs of all customers in a mass marketrdquo Thus with proper segmentation

organizations can effectively satisfy targeted customersrsquo needs

After the segmentation process marketers can move forward to utilize the techniques

of marketing mix to carry out the whole marketing activities ldquoFor most physical

goods the marketing mix consists of four elements product price place and

promotion For services the marketing mix can be extended to seven elements with

the addition of people processes and physical evidencerdquo (David Jobber 2006)

Whether marketers can effectively communicate messages to targeted customers or

audience is closely related to the promotion ie the marketing communications

which describe the most important areas of marketing (Pickton amp Hartley 1998) And

the marketing communication mix consists of five communication channels

advertising public relations personal selling direct marketing and sales

promotionFill C (2009)

11 25

With the systematic planning and effective implementation of relevant marketing

techniques marketers can ensure the products or service being successful in the

market

4 Marketing of Samsung

Samsung is one of the largest technology companies in the world founded in 1938 It

has almost 16000 employees in the world and its revenue for exceeds $117 billion in

2009 In the world most countries have Samsung Company Its headquarters are

located in Seoul South Korea Samsung has a big range of home appliances and

consumer electronics The company famous products in the world are TV ldquoGalaxyrdquo

tablet and mobile phones Now Samsung is the biggest mobile phones company in

the world

41 Marketing mix at Samsung

For the definition of marketing communications so far there is still no strict standard

According to Fill (2009) he declares that marketing communications is ldquoa manageme

nt process in which an organization engages with its various audiencesrdquo This include

s various kinds of activities From the view of Egan (2002) he thinks that marketing c

ommunications are ldquothe methods by which the suppliers who provide the goods value

s andor ideas services shows themselves to their target audiences aiming to stimulate

12 25

the dialogue successfully and form a better commercial or other relationshipsrdquo In oth

er words marketing communications are those things which can be transmitted from t

he company to the target audience Fill (2009) once says that there are four major func

tions ndash to differentiate to reinforce to inform and to persuade Selecting the first lette

rs of these four functions we can get DRIP Marketing communications are part of the

marketing mix which consists of Price Place Product and Promotion or the four Ps

According to Fill (2009) they consist of tools media and messages

42 Samsungrsquos message

Message can be defined as a set of symbols words and visual material (pictures

photos) that is sent to the target audience The company (in this case Samsung) could

be a sender as well as its brand name or someone who is advertising their products

(football players celebrities etc) (Kotler 2005) Kotler also argues that a message is

said to be good if it is easy to be understood by the target audience

Samsungrsquos brand main point is ldquoturn on tomorrowrdquo but sometime the company

develop is not follow its brand It stresses on the innovativeness of the companyrsquos

products The old message was ldquoeveryonersquos invitedrdquo but now the company does not

use the old message anymore The company has divided its messages to the target

audience in terms of the product range The main message that is attached to

13 25

Samsungrsquos new Galaxy tablets is ldquoLife without limitsrdquo All other messages regarding

this product range are related to the freedom that they provide In the USA the

message is ldquofeel free to Tabrdquo On the Samsungrsquos YouTube page one can see the same

messages

Samsungrsquos messages are emotional rather than rational That because the nature of the

Samsungrsquos products But there is a little of rational messages like ldquofeaturing a 7rdquo

screenrdquo which are necessary to show the product what the different between other

competitors I think that this type of messages is appropriate to be used If just use

emotional messages the customers may not know what exactly makes Samsungrsquos

products different than the others

43 Advertising at Samsung

Advertising is defined as ldquoany paid form of non-personal communication about an

organization product service or idea by an identified sponsorrdquo Belch amp Belch

(2002) When using advertising the message is normally transmitted via mass media ndash

TV radio newspapers etc A strong feature of advertising is that is can reach many

people sometimes even millions at the same time This is why it is used by large

companies (like Samsung) which aim to reach the mass market The company has

good control over the message and its design but there are almost no opportunities for

14 25

a feedback from the target audience Blythe (2006) argues that advertising has lower

credibility compared to the other marketing communication tools Therefore there is

no warranty that advertising will make the customers to buy the particular product or

service But it is an excellent tool for informing the target audience It is the most

expensive tool but has lowest price per customer reached Companies still spend

millions on advertising each year

Samsungrsquos advertisements are mainly emotional stressing the freedom that the

products provide but have a rational element stressing on their functionality Same

product carries the same type of information but stresses on the innovative technical

features (Google Maps with voice search etc) which explain why it is alleged to be

ldquothe best Android based smartphone in the worldrdquo

44 Sales promotion at Samsung

Belch amp Belch (2002) define sales promotion as ldquothose marketing activities that

provide extra value or incentives to the sales force the distributors or the ultimate

consumer and can stimulate immediate salesrdquo They key word here is ldquoimmediaterdquo

customers are inclined to act here and now Sales promotionsrsquo aim is to achieve short-

term increase in sales Baker (2007) argues that their credibility is at medium level

and the message is well controlled It is important for the sales promotion to continue

15 25

for a short period of time If it continues too long the customers may assume the

discounted price as a normal one and to postpone their buying decision until next

promotion

You can find all Samsung promotions on their website The customer can change the

country of residence to see the local promotions But the sites are different Due to

nature of the products the vast majority of sales promotions are of a lottery type where

there a big prize is won In my opinion the company uses this way not because to

increase its short-term sales but to increase the brand awareness and increase new

subscribers that who e-mail addresses will be used for direct marketing purposes

45 Social media at Samsung

Social media is a new phenomenon it develops speed very fast and more and more

important for the companyrsquos marketing communication The most powerful feature of

social networking is that it allows the customers and the company to into a dialogue

Word-of-Mouth that is spread around the social networks is another advantage

Samsung uses social media for both engaging with its customers and advertising It

has several Facebook pages divided by country and by product Galaxy product range

has fan pages but other products do not Similarly Samsung has fan pages in many

countries In my opinion Samsung still have many things can do by social media

16 25

5 Conclusion

Over the years all kinds of organisations have been undertaking varies of marketing

activities in order to increase their competitiveness in the market which allows them

to sustain their market shares and achieve organisational goals in the business world

Along with the development of mobile phone internet and personal computing

devices a new internet world emerges ie mobile internet In light of this there is a

new name for mobile phones that can effectively access to the internet ie

Smartphone

About the definition of IMC still no common agreement exist (Kim et al 2004) Som

e scholars think that IMC is a new concept while for others they support that the idea

of IMC is not new but just a more efficient way to manage the marketing communicat

ion tools (Kitchen amp Schultz 2009) In order to convey the messages clearly it is nec

essary for the customers to see and hear the same message This could be achieved onl

y if the different marketing communication tools support each-other

As we all know the company of Samsung owns more than $117 billion revenue in 20

11 with global technology (wwwsamsungcom) so much evidence about the integrati

on of the different communication tools could be found First the logo and the key me

ssages are globally standardized The Galaxy S tablet message is similar ndash ldquofreedomrdquo

17 25

ldquolive without limitsrdquo Other similar messages related to the feeling of being free are al

so attached to Galaxy S tablet worldwide

There is also a powerful integration between the different marketing communication t

ools and media For example integration between traditional and online media In ma

ny countries all sales promotions are integrated with direct marketing ndash customers are

required to provide their basic details and e-mails Social media is also very well integ

rated with sales promotions Print adverts are also integrated with sales promotion and

direct to the Samsung website

In an company such as Samsung the main thing creating difficulties is its size It is dif

ficult to co-ordinate the marketing activities in a company with nearly 160 000 emplo

yees Samsung has several official websites ndash the main site (Samsungcom) a site dev

oted only to mobile phone users in specific countries This could lead to confusion for

the customer and currently Samsung is merging these local sites with its global websit

e

18 25

References

Wall Street Journal (2009) Motorola Executive Helped spur Cellphone Revolution

Wall Street Journal 20ndash21 June 2009 p A10

Funk J 2001 The mobile Internet How Japan dialed up and the West disconnected

Pembroke Bermuda ISI Publications

19 25

Apple 2010 ldquoiPhone Developer Program License Agreementrdquo

httpwwwefforgfiles20100302_iphone_dev_agrpdf

Cusumano Michael 2010 ldquoTechnology Strategy and Management The Evolution of

Platform Thinkingrdquo Communications of the ACM 53 (1) 32-34

Martinez Salazar and Marco Martinez 2010 ldquoThe Mobile Phone User Identifying

Top Mobile Applicationsrdquo (April 1 2010) Available at SSRN

httpssrncomabstract=1691210

P Kotler (1980) Marketing Management 3th Edition Published by Prentice

Kotler P Armstrong G Saunders J And Wong V (1999) Principles of Marketing

2nd European edn Pretice- Hall

Denis Adcock Al Halborg and Caroline Ross(2001) Marketing Principles and

Practice 4th edn published by FT Prentice Hall

C Fill (2009) Marketing communications 5th edition Pearson Education

P Kotler (2009) Marketing Management European edition FT Prentice Hall

20 25

Ries A and trout J (1981) Positioning the Battle for Your Mind McGraw- Hall

David Jobber (2006) Principles and Practice of Marketing 6th edn published by

McGraw-Hill

Anderson PH 2001 Relationship development and marketing communication An

integrative model The Journal of Business and Industrial

Pickton D amp Hartley B (1998) Measuring integration an assessment of the quality

of integrated marketing communications International Journal of Advertising

D Schultz amp C Patti (2009) The evolution of IMC IMC in a customer-driven

marketplace Journal of Marketing Communications Vol 15 Nos 2ndash3 AprilndashJuly

2009 pp 75ndash84

L Percy (2008) Strategic integrated marketing communication theory and practice

Butterworth Heinemann

F Brassington amp S Pettitt (2007) Essentials of Marketing second edn FT Prentice

Hall

Spreng RA and Mackoy RD (1996) An empirical examination of a model of

21 25

perceived service quality and satisfaction Journal of Retailing Vol 72 pp 201-14

Shemwell DJ Yavas U and Bilgin Z 11130881998) ``Customer-service provider

relationships an empirical test of a model of service quality satisfaction and

relationship oriented outcome International Journal of Service Industry

Management Vol 9 pp 155-68

Newman K and Pyne T (1996) Quality matters junior doctorsrsquo perceptions

Journal of Management in Medicine Vol 10 No 4 pp 12-23

Morrison J(2006) The International Business Environment 2nd edition Published

by Palgrave MacMillan

Baker J (2007) Marketing strategy and management Publisher Palgrave Macmillan

Blythe J (2006) Marketing Published by SAGE

Egan J (2007) Marketing communications Published by Thomson Learning

Finne amp Gronroos (2009) ldquoRethinking marketing communication From integrated

marketing communication to relationship communicationrdquo Journal of Marketing

Communications Vol 15 Nos 2ndash3 AprilndashJuly 2009 179ndash195

22 25

Kotler P et al (2005) Principles of marketing 4th edition Publisher Pearson

Education

London Butterworth-Heinemann

Kotler P (2003) Marketing management 11th edition Publisher Pearson Education

Kim I Han D amp Schultz D (2004) ldquoUnderstanding the Diffusion of Integrated

Marketing Communicationsrdquo Journal of Advertising Research March 2004 pp 31-45

Kitchen P amp Schultz D (2009) ldquoIMC New horizonfalse dawn for a marketplace in

turmoilrdquo Journal of Marketing Communications Vol 15 Nos 2ndash3 AprilndashJuly

2009 197ndash204

Pickton D amp Broderick A (2005) Integrated Marketing Communications 2nd edition

Publisher Pearson Education

Russell E The fundamentals of marketing Publisher AVA Academia

httpnewscnetcom

23 25

httpwwwecirclecom

httpwwwyoutubecom

httpchroniclingamericalocgovlccnsn850424621906-05-21ed-1seq-7

httpwwwmsnbcmsncomid7432915nstechnology_and_science-wirelesstfirst-

cell-phone-true-brickT2o-y3mP5JE

httpwwwumtsworldcomumtshistoryhtm

Mobile market httpwwwgartnercomitpagejspid=1455314

httpwwwsamsungcom

24 25

  1. Widget PGBM 15 Marketing Management
Page 2: PGBM 15 Marketing Management

Contents

Title ------------------------------------------------------------------------- 2

1 Introduction ----------------------------------------------------------- 2 32 Dynamics and trends of mobile phone market ----------------- 3-9

21 Development of mobile phones --------------------------------------------- 3 4

22 Emergence of smartphones ------------------------------------------------- 5 6

23 Changes of leadership in the mobile phone market -------------------- 6-9

3 The importance of marketing management --------------------- 9-12

4 Marketing of Samsung ----------------------------------------------- 12-17

41 Marketing mix at Samsung -------------------------------------------------- 12 13

42 Samsungrsquos message ------------------------------------------------------------ 13 14

43 Advertising at Samsung ------------------------------------------------------- 14 15

44 Sales promotion at Samsung ------------------------------------------------- 16

45 Sponsorship at Samsung ------------------------------------------------------ 16 17

5 Conclusion -------------------------------------------------------------- 17-19

Reference ------------------------------------------------------------------- 10-25

1 25

Title Marketing of mobile phones

1 Introduction

Over the years all kinds of organisations have been undertaking varies of marketing

activities in order to increase their competitiveness in the market which allows them

to sustain their market shares and achieve organisational goals in the business world

In order to achieve different kinds of objectives all marketers need to work hard to

develop systematic plans to make sure they can be effective In the meantime they

also have to critically evaluate the results of all marketing plans so that they can

continuously identify issues analyse the root causes and find solutions to improve the

effectiveness of all plans Therefore the marketers and the marketing have been

playing an essential role in the organisations

In this paper the writer has chosen mobile phones as a research topic to discuss its

markets and trends in todayrsquos rapid development of technology world In the

meantime the writer has divided this report into three key sections Firstly the writer

discusses the dynamics and trends of the marketing environment of the mobile

phones Secondly the writer discusses the importance of marketing mix and product

innovation in the mobile phone industry Finally assuming as a newly appointed

marketing manager of Samsung smart phones the writer will discuss varied kinds of

2 25

marketing techniques to improve market shares profitability and sustainability of

Samsung At the end there is a conclusion section to summarise the whole report

2 Dynamics and trends of mobile phone market

21 Development of mobile phones

In our real life mobile phone have quite a long history since the first mobile phone

was invented in early 1900rsquos

(httpchroniclingamericalocgovlccnsn850424621906-05-21ed-1seq-7) Despite

of the early invention of mobile phone the commercial used mobile phone did not

become our daily usage until 1970rsquos when Motorolarsquos researchers started developing

the first hand-held mobile phone that can be used on a cellular network (Wall Street

Journal 2009) In light of this it is easy for us to understand that the traditional mobile

phone industry consists two key sections one is the mobile hand-held phone and the

other is the operating network on which the mobile phones can be used

Hence the development of the mobile network has been growing since 1970s and the

first commercial used network was launched by NTT in Japan in 1979

(httpwwwnttcojpindex_ehtml) Since then more countries have launched their

mobile networks such as Denmark Finland Norway and so on In the meantime the

first generation network was developed and used in 1983 This is the so called 1G

3 25

network on which the oldest cellular phone was operated

(httpwwwmsnbcmsncomid7432915nstechnology_and_science-wirelesstfirst-

cell-phone-true-brickT2o-y3mP5JE)

Along with the high demand of the mobile phone market the 2G (second generation)

network technology was launched in Finland in 1991 After ten years the 3G (third

generation) was launched in Japan (httpwwwumtsworldcomumtshistoryhtm)

With the rapid development of the new generation mobile technology the competition

of mobile phone industry has become more intense Both network operators and

mobile phone manufacturers have been investing huge amount of money to develop

new and advanced products to capture more users so that they can be profitable and

sustainable in their businesses

In recent years after the launch of 3G technology and 3G mobile phones it is very

obvious that new generation technology will be necessary for the huge growing

demand for higher speed of data transfer and more applications on the mobile phones

In the meantime the mobile phone manufacturers have also launched new series of

mobile phones to satisfy growing demand of more consumers Thus the mobile phone

industry has been developing very rapidly

22 Emergence of smartphones

4 25

Along with the development of mobile phone internet and personal computing

devices a new internet world emerges ie mobile internet (Funk 2001) In light of

this there is a new name for mobile phones that can effectively access to the internet

ie Smartphone Nowadays smartphones can not only provide users to use traditional

wireless voice talk but also allow them to access to the internet and use varied kinds

of software applications which is very important feature of smartphones that

differentiate themselves from traditional mobile phones

Because of the development of smartphones the whole industry has been changed

rapidly and has attracted great attention of all kinds of business players related to this

industry which includes mobile phone manufacturers internet service firms personal

computing device manufacturers and so on In light of this the smartphone actually

forms a new way of competition in the mobile phone industry Nowadays many

companies have believed that it is important for them to provide services or products

in the smartphone industry in order to create new business opportunities for their

future growth and profitability

There is lots of evidence that the smartphone industry has been rapidly growing For

example according to Gartnerrsquos statistics (2010) there were over 128 billion sets of

mobile phone sold in 2010 per se and the percentage of smartphones accounted for

over 20 of total amount In the meantime the growth of sales of smartphones has

5 25

been over 100 over the past years By 2012 it was estimated that the total sales of

smartphones would be more than those of PCs in the global market In addition the

Gartnerrsquos statistics indicate that by 2014 the total revenues generated from all mobile

devices including smartphones e-books and related services applied on these

devices would be more than US$10 trillion Furthermore by 2015 the total number

of smartphone users would be more than 2 billion based upon the forecasted growth

rate of smartphones and the forecasted declining costs of all kinds of components

From the above it is very obvious that the traditional mobile phones have been

replaced by smartphones in a rapid way Although this trend just started several years

ago when Apple Inc launched its first iPhone in 2007 (wwwapplecom) the speed of

change has convinced the market that the future of mobile phones belongs to

smartphones Accordingly the competition of the industry has become more

complicated and intense because of the emergence of smartphones

23 Changes of leadership in the mobile phone market

There are numerous manufacturers of mobile phones around the world Before 2010

the leading manufacturer of mobile phone is the Nokia According to the Gartnerrsquos

statistics (2010) Nokiarsquos market shares of mobile phones was about 60 of total

global sales during its peak performance Nokia has long been considered as a leader

6 25

in the low-end markets where it has dominant positions and markets are mostly in the

developing countries Despite of its strong positions in those low-end markets

statistics show that Nokiarsquos market shares in those markets have decreased to less

than 30 by 2010

In fact Symbian is Nokiarsquos operating system that has long been used on many

smartphones According to Gartnerrsquos statistics (2010) over 60 of all kinds of

smartphones used the Symbian as their operating systems in the year of 2007 when

the Windows operating system only accounted for about 11 of the total market

shares and the iPhone operating system only about 6 of total amount At the time

Nokia was the true leader in the smartphone industry in which it alone had more than

50 of the market shares all around the world

However Nokia has been losing its leadership position in the smartphone industry

according to Gartnerrsquos statistics (2010) By 2010 there were only about 36 of all

kinds smartphones using its Symbian as the operating system while Googlersquos

Android accounted for about 26 of the total and iPhone accounted for about 16 of

total

When it comes to iPhone it is the first real smartphone launched in the market in

2007 which in fact has great impact on the whole mobile phone industry Applersquos

7 25

iPhone indeed recreates the mobile phone standards in the history It does not only

provide an easy and friendly user environment that allows all to browse internet on

the iPhone but also it has leverage all different systems in the Apple devices and

applications which has namely been called the ecosystem According to Salazar et al

(2010) the key reason why iPhone has great usersrsquo acception and adoption is because

of innovations on iPhone in many ways From a media and digital device provider to a

smartphone provider Apple has an unique ecosystem that includes several platforms

on which iPhone can leverage successfully This has in fact great barrier for other

competitors to follow and react to it (Cusmano 2010) Therefore the launch of

iPhone has indeed taken away many market shares of key players in the industry

including the old time leader ie Nokia

As for Google it has its own unique business model as well which is different from

others It did not enter the smartphone industry until it acquired the operating system

ie Android Since then the Google has successfully entered the smartphone industry

by allowing all software developers to play on the Android system Because the

Android is a open system it has then attracted not only software developers but also

weaker mobile phone manufacturers that have great intention to develop their own

competitive smartphone products which include Samsung With the quick expansion

of Android system the Google rapidly captures the market shares in the smartphone

industry which accounted for about 25 of the total in 2010 With its Android the

8 25

Google has won the confidence of most mobile phone manufacturers around the

world according to the statistics of the Canalys (2010)

3 The importance of marketing management

The marketing guru Philip Kotler has contributed to the development of marketing

management in our modern world According to his early publications the marketing

definition is the human activity directed at satisfying needs and wants through an

exchange process (Kotler 1980) Along with the development of the market and

management theories Kotler and other marketing professionals added more meanings

into the definition of the marketing Marketing is a social managerial process by

which individuals and groups obtain what they need and want through creating and

exchanging products and value with others (Kotler et al 1999)

In fact the American Marketing Association has its own definition of marketing

which considered marketing being ldquoan organisational function and a set of processes

for creating communicating and delivering value to customers and for managing

customer relationships in ways that benefit the organisation and its stakeholdersrdquo

There is no doubt that marketing has long been playing an essential role of developing

all kinds of businesses for all organisations Without proper marketing management

all kinds of businesses would have difficulty in developing effective marketing plans

9 25

implementing their marketing activities to capture more customers and market shares

and eventually helping to improve their business performance in our rapidly-changing

market environment around the world The global market has been changing so

quickly that leads to more uncertainties than ever before In light of this it is very

critical for all kinds of businesses to have effective marketing management in place to

help organisations to respond and react to the ever-changing environment

There are two kinds of environment for all kinds of businesses ie external and

internal environment Both of them can have great impact on all business

organizations the market places where they run businesses and the co-relationship

among all factors (Jobber 2006) In light of this it is very important Thus

understanding environment and using the environment scanning are important

activities for all marketers and organizations Denis A at al (2001) argued that the

marketing environment factors are often referred to as Social Technological

Economic and Political varibles (PEST) In reality the PEST framework for

environmental auditing has been widely used in business work

After analysis the external environment marketers can make decisions and take

relevant approaches to allow organizations to identify and capitalize opportunities

(Kotler et al 1999) Based upon this marketers can then conduct necessary research to

indentify the market segmentations ldquoMarketing research is an essential tool for the

10 25

marketing manager in helping to define and locate market segments and understand

their needs and wantsrdquo (Jobber 2006)

Fill (2009) argues that ldquosegmentation is necessary because a single product is unlikely

to meet the needs of all customers in a mass marketrdquo Thus with proper segmentation

organizations can effectively satisfy targeted customersrsquo needs

After the segmentation process marketers can move forward to utilize the techniques

of marketing mix to carry out the whole marketing activities ldquoFor most physical

goods the marketing mix consists of four elements product price place and

promotion For services the marketing mix can be extended to seven elements with

the addition of people processes and physical evidencerdquo (David Jobber 2006)

Whether marketers can effectively communicate messages to targeted customers or

audience is closely related to the promotion ie the marketing communications

which describe the most important areas of marketing (Pickton amp Hartley 1998) And

the marketing communication mix consists of five communication channels

advertising public relations personal selling direct marketing and sales

promotionFill C (2009)

11 25

With the systematic planning and effective implementation of relevant marketing

techniques marketers can ensure the products or service being successful in the

market

4 Marketing of Samsung

Samsung is one of the largest technology companies in the world founded in 1938 It

has almost 16000 employees in the world and its revenue for exceeds $117 billion in

2009 In the world most countries have Samsung Company Its headquarters are

located in Seoul South Korea Samsung has a big range of home appliances and

consumer electronics The company famous products in the world are TV ldquoGalaxyrdquo

tablet and mobile phones Now Samsung is the biggest mobile phones company in

the world

41 Marketing mix at Samsung

For the definition of marketing communications so far there is still no strict standard

According to Fill (2009) he declares that marketing communications is ldquoa manageme

nt process in which an organization engages with its various audiencesrdquo This include

s various kinds of activities From the view of Egan (2002) he thinks that marketing c

ommunications are ldquothe methods by which the suppliers who provide the goods value

s andor ideas services shows themselves to their target audiences aiming to stimulate

12 25

the dialogue successfully and form a better commercial or other relationshipsrdquo In oth

er words marketing communications are those things which can be transmitted from t

he company to the target audience Fill (2009) once says that there are four major func

tions ndash to differentiate to reinforce to inform and to persuade Selecting the first lette

rs of these four functions we can get DRIP Marketing communications are part of the

marketing mix which consists of Price Place Product and Promotion or the four Ps

According to Fill (2009) they consist of tools media and messages

42 Samsungrsquos message

Message can be defined as a set of symbols words and visual material (pictures

photos) that is sent to the target audience The company (in this case Samsung) could

be a sender as well as its brand name or someone who is advertising their products

(football players celebrities etc) (Kotler 2005) Kotler also argues that a message is

said to be good if it is easy to be understood by the target audience

Samsungrsquos brand main point is ldquoturn on tomorrowrdquo but sometime the company

develop is not follow its brand It stresses on the innovativeness of the companyrsquos

products The old message was ldquoeveryonersquos invitedrdquo but now the company does not

use the old message anymore The company has divided its messages to the target

audience in terms of the product range The main message that is attached to

13 25

Samsungrsquos new Galaxy tablets is ldquoLife without limitsrdquo All other messages regarding

this product range are related to the freedom that they provide In the USA the

message is ldquofeel free to Tabrdquo On the Samsungrsquos YouTube page one can see the same

messages

Samsungrsquos messages are emotional rather than rational That because the nature of the

Samsungrsquos products But there is a little of rational messages like ldquofeaturing a 7rdquo

screenrdquo which are necessary to show the product what the different between other

competitors I think that this type of messages is appropriate to be used If just use

emotional messages the customers may not know what exactly makes Samsungrsquos

products different than the others

43 Advertising at Samsung

Advertising is defined as ldquoany paid form of non-personal communication about an

organization product service or idea by an identified sponsorrdquo Belch amp Belch

(2002) When using advertising the message is normally transmitted via mass media ndash

TV radio newspapers etc A strong feature of advertising is that is can reach many

people sometimes even millions at the same time This is why it is used by large

companies (like Samsung) which aim to reach the mass market The company has

good control over the message and its design but there are almost no opportunities for

14 25

a feedback from the target audience Blythe (2006) argues that advertising has lower

credibility compared to the other marketing communication tools Therefore there is

no warranty that advertising will make the customers to buy the particular product or

service But it is an excellent tool for informing the target audience It is the most

expensive tool but has lowest price per customer reached Companies still spend

millions on advertising each year

Samsungrsquos advertisements are mainly emotional stressing the freedom that the

products provide but have a rational element stressing on their functionality Same

product carries the same type of information but stresses on the innovative technical

features (Google Maps with voice search etc) which explain why it is alleged to be

ldquothe best Android based smartphone in the worldrdquo

44 Sales promotion at Samsung

Belch amp Belch (2002) define sales promotion as ldquothose marketing activities that

provide extra value or incentives to the sales force the distributors or the ultimate

consumer and can stimulate immediate salesrdquo They key word here is ldquoimmediaterdquo

customers are inclined to act here and now Sales promotionsrsquo aim is to achieve short-

term increase in sales Baker (2007) argues that their credibility is at medium level

and the message is well controlled It is important for the sales promotion to continue

15 25

for a short period of time If it continues too long the customers may assume the

discounted price as a normal one and to postpone their buying decision until next

promotion

You can find all Samsung promotions on their website The customer can change the

country of residence to see the local promotions But the sites are different Due to

nature of the products the vast majority of sales promotions are of a lottery type where

there a big prize is won In my opinion the company uses this way not because to

increase its short-term sales but to increase the brand awareness and increase new

subscribers that who e-mail addresses will be used for direct marketing purposes

45 Social media at Samsung

Social media is a new phenomenon it develops speed very fast and more and more

important for the companyrsquos marketing communication The most powerful feature of

social networking is that it allows the customers and the company to into a dialogue

Word-of-Mouth that is spread around the social networks is another advantage

Samsung uses social media for both engaging with its customers and advertising It

has several Facebook pages divided by country and by product Galaxy product range

has fan pages but other products do not Similarly Samsung has fan pages in many

countries In my opinion Samsung still have many things can do by social media

16 25

5 Conclusion

Over the years all kinds of organisations have been undertaking varies of marketing

activities in order to increase their competitiveness in the market which allows them

to sustain their market shares and achieve organisational goals in the business world

Along with the development of mobile phone internet and personal computing

devices a new internet world emerges ie mobile internet In light of this there is a

new name for mobile phones that can effectively access to the internet ie

Smartphone

About the definition of IMC still no common agreement exist (Kim et al 2004) Som

e scholars think that IMC is a new concept while for others they support that the idea

of IMC is not new but just a more efficient way to manage the marketing communicat

ion tools (Kitchen amp Schultz 2009) In order to convey the messages clearly it is nec

essary for the customers to see and hear the same message This could be achieved onl

y if the different marketing communication tools support each-other

As we all know the company of Samsung owns more than $117 billion revenue in 20

11 with global technology (wwwsamsungcom) so much evidence about the integrati

on of the different communication tools could be found First the logo and the key me

ssages are globally standardized The Galaxy S tablet message is similar ndash ldquofreedomrdquo

17 25

ldquolive without limitsrdquo Other similar messages related to the feeling of being free are al

so attached to Galaxy S tablet worldwide

There is also a powerful integration between the different marketing communication t

ools and media For example integration between traditional and online media In ma

ny countries all sales promotions are integrated with direct marketing ndash customers are

required to provide their basic details and e-mails Social media is also very well integ

rated with sales promotions Print adverts are also integrated with sales promotion and

direct to the Samsung website

In an company such as Samsung the main thing creating difficulties is its size It is dif

ficult to co-ordinate the marketing activities in a company with nearly 160 000 emplo

yees Samsung has several official websites ndash the main site (Samsungcom) a site dev

oted only to mobile phone users in specific countries This could lead to confusion for

the customer and currently Samsung is merging these local sites with its global websit

e

18 25

References

Wall Street Journal (2009) Motorola Executive Helped spur Cellphone Revolution

Wall Street Journal 20ndash21 June 2009 p A10

Funk J 2001 The mobile Internet How Japan dialed up and the West disconnected

Pembroke Bermuda ISI Publications

19 25

Apple 2010 ldquoiPhone Developer Program License Agreementrdquo

httpwwwefforgfiles20100302_iphone_dev_agrpdf

Cusumano Michael 2010 ldquoTechnology Strategy and Management The Evolution of

Platform Thinkingrdquo Communications of the ACM 53 (1) 32-34

Martinez Salazar and Marco Martinez 2010 ldquoThe Mobile Phone User Identifying

Top Mobile Applicationsrdquo (April 1 2010) Available at SSRN

httpssrncomabstract=1691210

P Kotler (1980) Marketing Management 3th Edition Published by Prentice

Kotler P Armstrong G Saunders J And Wong V (1999) Principles of Marketing

2nd European edn Pretice- Hall

Denis Adcock Al Halborg and Caroline Ross(2001) Marketing Principles and

Practice 4th edn published by FT Prentice Hall

C Fill (2009) Marketing communications 5th edition Pearson Education

P Kotler (2009) Marketing Management European edition FT Prentice Hall

20 25

Ries A and trout J (1981) Positioning the Battle for Your Mind McGraw- Hall

David Jobber (2006) Principles and Practice of Marketing 6th edn published by

McGraw-Hill

Anderson PH 2001 Relationship development and marketing communication An

integrative model The Journal of Business and Industrial

Pickton D amp Hartley B (1998) Measuring integration an assessment of the quality

of integrated marketing communications International Journal of Advertising

D Schultz amp C Patti (2009) The evolution of IMC IMC in a customer-driven

marketplace Journal of Marketing Communications Vol 15 Nos 2ndash3 AprilndashJuly

2009 pp 75ndash84

L Percy (2008) Strategic integrated marketing communication theory and practice

Butterworth Heinemann

F Brassington amp S Pettitt (2007) Essentials of Marketing second edn FT Prentice

Hall

Spreng RA and Mackoy RD (1996) An empirical examination of a model of

21 25

perceived service quality and satisfaction Journal of Retailing Vol 72 pp 201-14

Shemwell DJ Yavas U and Bilgin Z 11130881998) ``Customer-service provider

relationships an empirical test of a model of service quality satisfaction and

relationship oriented outcome International Journal of Service Industry

Management Vol 9 pp 155-68

Newman K and Pyne T (1996) Quality matters junior doctorsrsquo perceptions

Journal of Management in Medicine Vol 10 No 4 pp 12-23

Morrison J(2006) The International Business Environment 2nd edition Published

by Palgrave MacMillan

Baker J (2007) Marketing strategy and management Publisher Palgrave Macmillan

Blythe J (2006) Marketing Published by SAGE

Egan J (2007) Marketing communications Published by Thomson Learning

Finne amp Gronroos (2009) ldquoRethinking marketing communication From integrated

marketing communication to relationship communicationrdquo Journal of Marketing

Communications Vol 15 Nos 2ndash3 AprilndashJuly 2009 179ndash195

22 25

Kotler P et al (2005) Principles of marketing 4th edition Publisher Pearson

Education

London Butterworth-Heinemann

Kotler P (2003) Marketing management 11th edition Publisher Pearson Education

Kim I Han D amp Schultz D (2004) ldquoUnderstanding the Diffusion of Integrated

Marketing Communicationsrdquo Journal of Advertising Research March 2004 pp 31-45

Kitchen P amp Schultz D (2009) ldquoIMC New horizonfalse dawn for a marketplace in

turmoilrdquo Journal of Marketing Communications Vol 15 Nos 2ndash3 AprilndashJuly

2009 197ndash204

Pickton D amp Broderick A (2005) Integrated Marketing Communications 2nd edition

Publisher Pearson Education

Russell E The fundamentals of marketing Publisher AVA Academia

httpnewscnetcom

23 25

httpwwwecirclecom

httpwwwyoutubecom

httpchroniclingamericalocgovlccnsn850424621906-05-21ed-1seq-7

httpwwwmsnbcmsncomid7432915nstechnology_and_science-wirelesstfirst-

cell-phone-true-brickT2o-y3mP5JE

httpwwwumtsworldcomumtshistoryhtm

Mobile market httpwwwgartnercomitpagejspid=1455314

httpwwwsamsungcom

24 25

  1. Widget PGBM 15 Marketing Management
Page 3: PGBM 15 Marketing Management

Title Marketing of mobile phones

1 Introduction

Over the years all kinds of organisations have been undertaking varies of marketing

activities in order to increase their competitiveness in the market which allows them

to sustain their market shares and achieve organisational goals in the business world

In order to achieve different kinds of objectives all marketers need to work hard to

develop systematic plans to make sure they can be effective In the meantime they

also have to critically evaluate the results of all marketing plans so that they can

continuously identify issues analyse the root causes and find solutions to improve the

effectiveness of all plans Therefore the marketers and the marketing have been

playing an essential role in the organisations

In this paper the writer has chosen mobile phones as a research topic to discuss its

markets and trends in todayrsquos rapid development of technology world In the

meantime the writer has divided this report into three key sections Firstly the writer

discusses the dynamics and trends of the marketing environment of the mobile

phones Secondly the writer discusses the importance of marketing mix and product

innovation in the mobile phone industry Finally assuming as a newly appointed

marketing manager of Samsung smart phones the writer will discuss varied kinds of

2 25

marketing techniques to improve market shares profitability and sustainability of

Samsung At the end there is a conclusion section to summarise the whole report

2 Dynamics and trends of mobile phone market

21 Development of mobile phones

In our real life mobile phone have quite a long history since the first mobile phone

was invented in early 1900rsquos

(httpchroniclingamericalocgovlccnsn850424621906-05-21ed-1seq-7) Despite

of the early invention of mobile phone the commercial used mobile phone did not

become our daily usage until 1970rsquos when Motorolarsquos researchers started developing

the first hand-held mobile phone that can be used on a cellular network (Wall Street

Journal 2009) In light of this it is easy for us to understand that the traditional mobile

phone industry consists two key sections one is the mobile hand-held phone and the

other is the operating network on which the mobile phones can be used

Hence the development of the mobile network has been growing since 1970s and the

first commercial used network was launched by NTT in Japan in 1979

(httpwwwnttcojpindex_ehtml) Since then more countries have launched their

mobile networks such as Denmark Finland Norway and so on In the meantime the

first generation network was developed and used in 1983 This is the so called 1G

3 25

network on which the oldest cellular phone was operated

(httpwwwmsnbcmsncomid7432915nstechnology_and_science-wirelesstfirst-

cell-phone-true-brickT2o-y3mP5JE)

Along with the high demand of the mobile phone market the 2G (second generation)

network technology was launched in Finland in 1991 After ten years the 3G (third

generation) was launched in Japan (httpwwwumtsworldcomumtshistoryhtm)

With the rapid development of the new generation mobile technology the competition

of mobile phone industry has become more intense Both network operators and

mobile phone manufacturers have been investing huge amount of money to develop

new and advanced products to capture more users so that they can be profitable and

sustainable in their businesses

In recent years after the launch of 3G technology and 3G mobile phones it is very

obvious that new generation technology will be necessary for the huge growing

demand for higher speed of data transfer and more applications on the mobile phones

In the meantime the mobile phone manufacturers have also launched new series of

mobile phones to satisfy growing demand of more consumers Thus the mobile phone

industry has been developing very rapidly

22 Emergence of smartphones

4 25

Along with the development of mobile phone internet and personal computing

devices a new internet world emerges ie mobile internet (Funk 2001) In light of

this there is a new name for mobile phones that can effectively access to the internet

ie Smartphone Nowadays smartphones can not only provide users to use traditional

wireless voice talk but also allow them to access to the internet and use varied kinds

of software applications which is very important feature of smartphones that

differentiate themselves from traditional mobile phones

Because of the development of smartphones the whole industry has been changed

rapidly and has attracted great attention of all kinds of business players related to this

industry which includes mobile phone manufacturers internet service firms personal

computing device manufacturers and so on In light of this the smartphone actually

forms a new way of competition in the mobile phone industry Nowadays many

companies have believed that it is important for them to provide services or products

in the smartphone industry in order to create new business opportunities for their

future growth and profitability

There is lots of evidence that the smartphone industry has been rapidly growing For

example according to Gartnerrsquos statistics (2010) there were over 128 billion sets of

mobile phone sold in 2010 per se and the percentage of smartphones accounted for

over 20 of total amount In the meantime the growth of sales of smartphones has

5 25

been over 100 over the past years By 2012 it was estimated that the total sales of

smartphones would be more than those of PCs in the global market In addition the

Gartnerrsquos statistics indicate that by 2014 the total revenues generated from all mobile

devices including smartphones e-books and related services applied on these

devices would be more than US$10 trillion Furthermore by 2015 the total number

of smartphone users would be more than 2 billion based upon the forecasted growth

rate of smartphones and the forecasted declining costs of all kinds of components

From the above it is very obvious that the traditional mobile phones have been

replaced by smartphones in a rapid way Although this trend just started several years

ago when Apple Inc launched its first iPhone in 2007 (wwwapplecom) the speed of

change has convinced the market that the future of mobile phones belongs to

smartphones Accordingly the competition of the industry has become more

complicated and intense because of the emergence of smartphones

23 Changes of leadership in the mobile phone market

There are numerous manufacturers of mobile phones around the world Before 2010

the leading manufacturer of mobile phone is the Nokia According to the Gartnerrsquos

statistics (2010) Nokiarsquos market shares of mobile phones was about 60 of total

global sales during its peak performance Nokia has long been considered as a leader

6 25

in the low-end markets where it has dominant positions and markets are mostly in the

developing countries Despite of its strong positions in those low-end markets

statistics show that Nokiarsquos market shares in those markets have decreased to less

than 30 by 2010

In fact Symbian is Nokiarsquos operating system that has long been used on many

smartphones According to Gartnerrsquos statistics (2010) over 60 of all kinds of

smartphones used the Symbian as their operating systems in the year of 2007 when

the Windows operating system only accounted for about 11 of the total market

shares and the iPhone operating system only about 6 of total amount At the time

Nokia was the true leader in the smartphone industry in which it alone had more than

50 of the market shares all around the world

However Nokia has been losing its leadership position in the smartphone industry

according to Gartnerrsquos statistics (2010) By 2010 there were only about 36 of all

kinds smartphones using its Symbian as the operating system while Googlersquos

Android accounted for about 26 of the total and iPhone accounted for about 16 of

total

When it comes to iPhone it is the first real smartphone launched in the market in

2007 which in fact has great impact on the whole mobile phone industry Applersquos

7 25

iPhone indeed recreates the mobile phone standards in the history It does not only

provide an easy and friendly user environment that allows all to browse internet on

the iPhone but also it has leverage all different systems in the Apple devices and

applications which has namely been called the ecosystem According to Salazar et al

(2010) the key reason why iPhone has great usersrsquo acception and adoption is because

of innovations on iPhone in many ways From a media and digital device provider to a

smartphone provider Apple has an unique ecosystem that includes several platforms

on which iPhone can leverage successfully This has in fact great barrier for other

competitors to follow and react to it (Cusmano 2010) Therefore the launch of

iPhone has indeed taken away many market shares of key players in the industry

including the old time leader ie Nokia

As for Google it has its own unique business model as well which is different from

others It did not enter the smartphone industry until it acquired the operating system

ie Android Since then the Google has successfully entered the smartphone industry

by allowing all software developers to play on the Android system Because the

Android is a open system it has then attracted not only software developers but also

weaker mobile phone manufacturers that have great intention to develop their own

competitive smartphone products which include Samsung With the quick expansion

of Android system the Google rapidly captures the market shares in the smartphone

industry which accounted for about 25 of the total in 2010 With its Android the

8 25

Google has won the confidence of most mobile phone manufacturers around the

world according to the statistics of the Canalys (2010)

3 The importance of marketing management

The marketing guru Philip Kotler has contributed to the development of marketing

management in our modern world According to his early publications the marketing

definition is the human activity directed at satisfying needs and wants through an

exchange process (Kotler 1980) Along with the development of the market and

management theories Kotler and other marketing professionals added more meanings

into the definition of the marketing Marketing is a social managerial process by

which individuals and groups obtain what they need and want through creating and

exchanging products and value with others (Kotler et al 1999)

In fact the American Marketing Association has its own definition of marketing

which considered marketing being ldquoan organisational function and a set of processes

for creating communicating and delivering value to customers and for managing

customer relationships in ways that benefit the organisation and its stakeholdersrdquo

There is no doubt that marketing has long been playing an essential role of developing

all kinds of businesses for all organisations Without proper marketing management

all kinds of businesses would have difficulty in developing effective marketing plans

9 25

implementing their marketing activities to capture more customers and market shares

and eventually helping to improve their business performance in our rapidly-changing

market environment around the world The global market has been changing so

quickly that leads to more uncertainties than ever before In light of this it is very

critical for all kinds of businesses to have effective marketing management in place to

help organisations to respond and react to the ever-changing environment

There are two kinds of environment for all kinds of businesses ie external and

internal environment Both of them can have great impact on all business

organizations the market places where they run businesses and the co-relationship

among all factors (Jobber 2006) In light of this it is very important Thus

understanding environment and using the environment scanning are important

activities for all marketers and organizations Denis A at al (2001) argued that the

marketing environment factors are often referred to as Social Technological

Economic and Political varibles (PEST) In reality the PEST framework for

environmental auditing has been widely used in business work

After analysis the external environment marketers can make decisions and take

relevant approaches to allow organizations to identify and capitalize opportunities

(Kotler et al 1999) Based upon this marketers can then conduct necessary research to

indentify the market segmentations ldquoMarketing research is an essential tool for the

10 25

marketing manager in helping to define and locate market segments and understand

their needs and wantsrdquo (Jobber 2006)

Fill (2009) argues that ldquosegmentation is necessary because a single product is unlikely

to meet the needs of all customers in a mass marketrdquo Thus with proper segmentation

organizations can effectively satisfy targeted customersrsquo needs

After the segmentation process marketers can move forward to utilize the techniques

of marketing mix to carry out the whole marketing activities ldquoFor most physical

goods the marketing mix consists of four elements product price place and

promotion For services the marketing mix can be extended to seven elements with

the addition of people processes and physical evidencerdquo (David Jobber 2006)

Whether marketers can effectively communicate messages to targeted customers or

audience is closely related to the promotion ie the marketing communications

which describe the most important areas of marketing (Pickton amp Hartley 1998) And

the marketing communication mix consists of five communication channels

advertising public relations personal selling direct marketing and sales

promotionFill C (2009)

11 25

With the systematic planning and effective implementation of relevant marketing

techniques marketers can ensure the products or service being successful in the

market

4 Marketing of Samsung

Samsung is one of the largest technology companies in the world founded in 1938 It

has almost 16000 employees in the world and its revenue for exceeds $117 billion in

2009 In the world most countries have Samsung Company Its headquarters are

located in Seoul South Korea Samsung has a big range of home appliances and

consumer electronics The company famous products in the world are TV ldquoGalaxyrdquo

tablet and mobile phones Now Samsung is the biggest mobile phones company in

the world

41 Marketing mix at Samsung

For the definition of marketing communications so far there is still no strict standard

According to Fill (2009) he declares that marketing communications is ldquoa manageme

nt process in which an organization engages with its various audiencesrdquo This include

s various kinds of activities From the view of Egan (2002) he thinks that marketing c

ommunications are ldquothe methods by which the suppliers who provide the goods value

s andor ideas services shows themselves to their target audiences aiming to stimulate

12 25

the dialogue successfully and form a better commercial or other relationshipsrdquo In oth

er words marketing communications are those things which can be transmitted from t

he company to the target audience Fill (2009) once says that there are four major func

tions ndash to differentiate to reinforce to inform and to persuade Selecting the first lette

rs of these four functions we can get DRIP Marketing communications are part of the

marketing mix which consists of Price Place Product and Promotion or the four Ps

According to Fill (2009) they consist of tools media and messages

42 Samsungrsquos message

Message can be defined as a set of symbols words and visual material (pictures

photos) that is sent to the target audience The company (in this case Samsung) could

be a sender as well as its brand name or someone who is advertising their products

(football players celebrities etc) (Kotler 2005) Kotler also argues that a message is

said to be good if it is easy to be understood by the target audience

Samsungrsquos brand main point is ldquoturn on tomorrowrdquo but sometime the company

develop is not follow its brand It stresses on the innovativeness of the companyrsquos

products The old message was ldquoeveryonersquos invitedrdquo but now the company does not

use the old message anymore The company has divided its messages to the target

audience in terms of the product range The main message that is attached to

13 25

Samsungrsquos new Galaxy tablets is ldquoLife without limitsrdquo All other messages regarding

this product range are related to the freedom that they provide In the USA the

message is ldquofeel free to Tabrdquo On the Samsungrsquos YouTube page one can see the same

messages

Samsungrsquos messages are emotional rather than rational That because the nature of the

Samsungrsquos products But there is a little of rational messages like ldquofeaturing a 7rdquo

screenrdquo which are necessary to show the product what the different between other

competitors I think that this type of messages is appropriate to be used If just use

emotional messages the customers may not know what exactly makes Samsungrsquos

products different than the others

43 Advertising at Samsung

Advertising is defined as ldquoany paid form of non-personal communication about an

organization product service or idea by an identified sponsorrdquo Belch amp Belch

(2002) When using advertising the message is normally transmitted via mass media ndash

TV radio newspapers etc A strong feature of advertising is that is can reach many

people sometimes even millions at the same time This is why it is used by large

companies (like Samsung) which aim to reach the mass market The company has

good control over the message and its design but there are almost no opportunities for

14 25

a feedback from the target audience Blythe (2006) argues that advertising has lower

credibility compared to the other marketing communication tools Therefore there is

no warranty that advertising will make the customers to buy the particular product or

service But it is an excellent tool for informing the target audience It is the most

expensive tool but has lowest price per customer reached Companies still spend

millions on advertising each year

Samsungrsquos advertisements are mainly emotional stressing the freedom that the

products provide but have a rational element stressing on their functionality Same

product carries the same type of information but stresses on the innovative technical

features (Google Maps with voice search etc) which explain why it is alleged to be

ldquothe best Android based smartphone in the worldrdquo

44 Sales promotion at Samsung

Belch amp Belch (2002) define sales promotion as ldquothose marketing activities that

provide extra value or incentives to the sales force the distributors or the ultimate

consumer and can stimulate immediate salesrdquo They key word here is ldquoimmediaterdquo

customers are inclined to act here and now Sales promotionsrsquo aim is to achieve short-

term increase in sales Baker (2007) argues that their credibility is at medium level

and the message is well controlled It is important for the sales promotion to continue

15 25

for a short period of time If it continues too long the customers may assume the

discounted price as a normal one and to postpone their buying decision until next

promotion

You can find all Samsung promotions on their website The customer can change the

country of residence to see the local promotions But the sites are different Due to

nature of the products the vast majority of sales promotions are of a lottery type where

there a big prize is won In my opinion the company uses this way not because to

increase its short-term sales but to increase the brand awareness and increase new

subscribers that who e-mail addresses will be used for direct marketing purposes

45 Social media at Samsung

Social media is a new phenomenon it develops speed very fast and more and more

important for the companyrsquos marketing communication The most powerful feature of

social networking is that it allows the customers and the company to into a dialogue

Word-of-Mouth that is spread around the social networks is another advantage

Samsung uses social media for both engaging with its customers and advertising It

has several Facebook pages divided by country and by product Galaxy product range

has fan pages but other products do not Similarly Samsung has fan pages in many

countries In my opinion Samsung still have many things can do by social media

16 25

5 Conclusion

Over the years all kinds of organisations have been undertaking varies of marketing

activities in order to increase their competitiveness in the market which allows them

to sustain their market shares and achieve organisational goals in the business world

Along with the development of mobile phone internet and personal computing

devices a new internet world emerges ie mobile internet In light of this there is a

new name for mobile phones that can effectively access to the internet ie

Smartphone

About the definition of IMC still no common agreement exist (Kim et al 2004) Som

e scholars think that IMC is a new concept while for others they support that the idea

of IMC is not new but just a more efficient way to manage the marketing communicat

ion tools (Kitchen amp Schultz 2009) In order to convey the messages clearly it is nec

essary for the customers to see and hear the same message This could be achieved onl

y if the different marketing communication tools support each-other

As we all know the company of Samsung owns more than $117 billion revenue in 20

11 with global technology (wwwsamsungcom) so much evidence about the integrati

on of the different communication tools could be found First the logo and the key me

ssages are globally standardized The Galaxy S tablet message is similar ndash ldquofreedomrdquo

17 25

ldquolive without limitsrdquo Other similar messages related to the feeling of being free are al

so attached to Galaxy S tablet worldwide

There is also a powerful integration between the different marketing communication t

ools and media For example integration between traditional and online media In ma

ny countries all sales promotions are integrated with direct marketing ndash customers are

required to provide their basic details and e-mails Social media is also very well integ

rated with sales promotions Print adverts are also integrated with sales promotion and

direct to the Samsung website

In an company such as Samsung the main thing creating difficulties is its size It is dif

ficult to co-ordinate the marketing activities in a company with nearly 160 000 emplo

yees Samsung has several official websites ndash the main site (Samsungcom) a site dev

oted only to mobile phone users in specific countries This could lead to confusion for

the customer and currently Samsung is merging these local sites with its global websit

e

18 25

References

Wall Street Journal (2009) Motorola Executive Helped spur Cellphone Revolution

Wall Street Journal 20ndash21 June 2009 p A10

Funk J 2001 The mobile Internet How Japan dialed up and the West disconnected

Pembroke Bermuda ISI Publications

19 25

Apple 2010 ldquoiPhone Developer Program License Agreementrdquo

httpwwwefforgfiles20100302_iphone_dev_agrpdf

Cusumano Michael 2010 ldquoTechnology Strategy and Management The Evolution of

Platform Thinkingrdquo Communications of the ACM 53 (1) 32-34

Martinez Salazar and Marco Martinez 2010 ldquoThe Mobile Phone User Identifying

Top Mobile Applicationsrdquo (April 1 2010) Available at SSRN

httpssrncomabstract=1691210

P Kotler (1980) Marketing Management 3th Edition Published by Prentice

Kotler P Armstrong G Saunders J And Wong V (1999) Principles of Marketing

2nd European edn Pretice- Hall

Denis Adcock Al Halborg and Caroline Ross(2001) Marketing Principles and

Practice 4th edn published by FT Prentice Hall

C Fill (2009) Marketing communications 5th edition Pearson Education

P Kotler (2009) Marketing Management European edition FT Prentice Hall

20 25

Ries A and trout J (1981) Positioning the Battle for Your Mind McGraw- Hall

David Jobber (2006) Principles and Practice of Marketing 6th edn published by

McGraw-Hill

Anderson PH 2001 Relationship development and marketing communication An

integrative model The Journal of Business and Industrial

Pickton D amp Hartley B (1998) Measuring integration an assessment of the quality

of integrated marketing communications International Journal of Advertising

D Schultz amp C Patti (2009) The evolution of IMC IMC in a customer-driven

marketplace Journal of Marketing Communications Vol 15 Nos 2ndash3 AprilndashJuly

2009 pp 75ndash84

L Percy (2008) Strategic integrated marketing communication theory and practice

Butterworth Heinemann

F Brassington amp S Pettitt (2007) Essentials of Marketing second edn FT Prentice

Hall

Spreng RA and Mackoy RD (1996) An empirical examination of a model of

21 25

perceived service quality and satisfaction Journal of Retailing Vol 72 pp 201-14

Shemwell DJ Yavas U and Bilgin Z 11130881998) ``Customer-service provider

relationships an empirical test of a model of service quality satisfaction and

relationship oriented outcome International Journal of Service Industry

Management Vol 9 pp 155-68

Newman K and Pyne T (1996) Quality matters junior doctorsrsquo perceptions

Journal of Management in Medicine Vol 10 No 4 pp 12-23

Morrison J(2006) The International Business Environment 2nd edition Published

by Palgrave MacMillan

Baker J (2007) Marketing strategy and management Publisher Palgrave Macmillan

Blythe J (2006) Marketing Published by SAGE

Egan J (2007) Marketing communications Published by Thomson Learning

Finne amp Gronroos (2009) ldquoRethinking marketing communication From integrated

marketing communication to relationship communicationrdquo Journal of Marketing

Communications Vol 15 Nos 2ndash3 AprilndashJuly 2009 179ndash195

22 25

Kotler P et al (2005) Principles of marketing 4th edition Publisher Pearson

Education

London Butterworth-Heinemann

Kotler P (2003) Marketing management 11th edition Publisher Pearson Education

Kim I Han D amp Schultz D (2004) ldquoUnderstanding the Diffusion of Integrated

Marketing Communicationsrdquo Journal of Advertising Research March 2004 pp 31-45

Kitchen P amp Schultz D (2009) ldquoIMC New horizonfalse dawn for a marketplace in

turmoilrdquo Journal of Marketing Communications Vol 15 Nos 2ndash3 AprilndashJuly

2009 197ndash204

Pickton D amp Broderick A (2005) Integrated Marketing Communications 2nd edition

Publisher Pearson Education

Russell E The fundamentals of marketing Publisher AVA Academia

httpnewscnetcom

23 25

httpwwwecirclecom

httpwwwyoutubecom

httpchroniclingamericalocgovlccnsn850424621906-05-21ed-1seq-7

httpwwwmsnbcmsncomid7432915nstechnology_and_science-wirelesstfirst-

cell-phone-true-brickT2o-y3mP5JE

httpwwwumtsworldcomumtshistoryhtm

Mobile market httpwwwgartnercomitpagejspid=1455314

httpwwwsamsungcom

24 25

  1. Widget PGBM 15 Marketing Management
Page 4: PGBM 15 Marketing Management

marketing techniques to improve market shares profitability and sustainability of

Samsung At the end there is a conclusion section to summarise the whole report

2 Dynamics and trends of mobile phone market

21 Development of mobile phones

In our real life mobile phone have quite a long history since the first mobile phone

was invented in early 1900rsquos

(httpchroniclingamericalocgovlccnsn850424621906-05-21ed-1seq-7) Despite

of the early invention of mobile phone the commercial used mobile phone did not

become our daily usage until 1970rsquos when Motorolarsquos researchers started developing

the first hand-held mobile phone that can be used on a cellular network (Wall Street

Journal 2009) In light of this it is easy for us to understand that the traditional mobile

phone industry consists two key sections one is the mobile hand-held phone and the

other is the operating network on which the mobile phones can be used

Hence the development of the mobile network has been growing since 1970s and the

first commercial used network was launched by NTT in Japan in 1979

(httpwwwnttcojpindex_ehtml) Since then more countries have launched their

mobile networks such as Denmark Finland Norway and so on In the meantime the

first generation network was developed and used in 1983 This is the so called 1G

3 25

network on which the oldest cellular phone was operated

(httpwwwmsnbcmsncomid7432915nstechnology_and_science-wirelesstfirst-

cell-phone-true-brickT2o-y3mP5JE)

Along with the high demand of the mobile phone market the 2G (second generation)

network technology was launched in Finland in 1991 After ten years the 3G (third

generation) was launched in Japan (httpwwwumtsworldcomumtshistoryhtm)

With the rapid development of the new generation mobile technology the competition

of mobile phone industry has become more intense Both network operators and

mobile phone manufacturers have been investing huge amount of money to develop

new and advanced products to capture more users so that they can be profitable and

sustainable in their businesses

In recent years after the launch of 3G technology and 3G mobile phones it is very

obvious that new generation technology will be necessary for the huge growing

demand for higher speed of data transfer and more applications on the mobile phones

In the meantime the mobile phone manufacturers have also launched new series of

mobile phones to satisfy growing demand of more consumers Thus the mobile phone

industry has been developing very rapidly

22 Emergence of smartphones

4 25

Along with the development of mobile phone internet and personal computing

devices a new internet world emerges ie mobile internet (Funk 2001) In light of

this there is a new name for mobile phones that can effectively access to the internet

ie Smartphone Nowadays smartphones can not only provide users to use traditional

wireless voice talk but also allow them to access to the internet and use varied kinds

of software applications which is very important feature of smartphones that

differentiate themselves from traditional mobile phones

Because of the development of smartphones the whole industry has been changed

rapidly and has attracted great attention of all kinds of business players related to this

industry which includes mobile phone manufacturers internet service firms personal

computing device manufacturers and so on In light of this the smartphone actually

forms a new way of competition in the mobile phone industry Nowadays many

companies have believed that it is important for them to provide services or products

in the smartphone industry in order to create new business opportunities for their

future growth and profitability

There is lots of evidence that the smartphone industry has been rapidly growing For

example according to Gartnerrsquos statistics (2010) there were over 128 billion sets of

mobile phone sold in 2010 per se and the percentage of smartphones accounted for

over 20 of total amount In the meantime the growth of sales of smartphones has

5 25

been over 100 over the past years By 2012 it was estimated that the total sales of

smartphones would be more than those of PCs in the global market In addition the

Gartnerrsquos statistics indicate that by 2014 the total revenues generated from all mobile

devices including smartphones e-books and related services applied on these

devices would be more than US$10 trillion Furthermore by 2015 the total number

of smartphone users would be more than 2 billion based upon the forecasted growth

rate of smartphones and the forecasted declining costs of all kinds of components

From the above it is very obvious that the traditional mobile phones have been

replaced by smartphones in a rapid way Although this trend just started several years

ago when Apple Inc launched its first iPhone in 2007 (wwwapplecom) the speed of

change has convinced the market that the future of mobile phones belongs to

smartphones Accordingly the competition of the industry has become more

complicated and intense because of the emergence of smartphones

23 Changes of leadership in the mobile phone market

There are numerous manufacturers of mobile phones around the world Before 2010

the leading manufacturer of mobile phone is the Nokia According to the Gartnerrsquos

statistics (2010) Nokiarsquos market shares of mobile phones was about 60 of total

global sales during its peak performance Nokia has long been considered as a leader

6 25

in the low-end markets where it has dominant positions and markets are mostly in the

developing countries Despite of its strong positions in those low-end markets

statistics show that Nokiarsquos market shares in those markets have decreased to less

than 30 by 2010

In fact Symbian is Nokiarsquos operating system that has long been used on many

smartphones According to Gartnerrsquos statistics (2010) over 60 of all kinds of

smartphones used the Symbian as their operating systems in the year of 2007 when

the Windows operating system only accounted for about 11 of the total market

shares and the iPhone operating system only about 6 of total amount At the time

Nokia was the true leader in the smartphone industry in which it alone had more than

50 of the market shares all around the world

However Nokia has been losing its leadership position in the smartphone industry

according to Gartnerrsquos statistics (2010) By 2010 there were only about 36 of all

kinds smartphones using its Symbian as the operating system while Googlersquos

Android accounted for about 26 of the total and iPhone accounted for about 16 of

total

When it comes to iPhone it is the first real smartphone launched in the market in

2007 which in fact has great impact on the whole mobile phone industry Applersquos

7 25

iPhone indeed recreates the mobile phone standards in the history It does not only

provide an easy and friendly user environment that allows all to browse internet on

the iPhone but also it has leverage all different systems in the Apple devices and

applications which has namely been called the ecosystem According to Salazar et al

(2010) the key reason why iPhone has great usersrsquo acception and adoption is because

of innovations on iPhone in many ways From a media and digital device provider to a

smartphone provider Apple has an unique ecosystem that includes several platforms

on which iPhone can leverage successfully This has in fact great barrier for other

competitors to follow and react to it (Cusmano 2010) Therefore the launch of

iPhone has indeed taken away many market shares of key players in the industry

including the old time leader ie Nokia

As for Google it has its own unique business model as well which is different from

others It did not enter the smartphone industry until it acquired the operating system

ie Android Since then the Google has successfully entered the smartphone industry

by allowing all software developers to play on the Android system Because the

Android is a open system it has then attracted not only software developers but also

weaker mobile phone manufacturers that have great intention to develop their own

competitive smartphone products which include Samsung With the quick expansion

of Android system the Google rapidly captures the market shares in the smartphone

industry which accounted for about 25 of the total in 2010 With its Android the

8 25

Google has won the confidence of most mobile phone manufacturers around the

world according to the statistics of the Canalys (2010)

3 The importance of marketing management

The marketing guru Philip Kotler has contributed to the development of marketing

management in our modern world According to his early publications the marketing

definition is the human activity directed at satisfying needs and wants through an

exchange process (Kotler 1980) Along with the development of the market and

management theories Kotler and other marketing professionals added more meanings

into the definition of the marketing Marketing is a social managerial process by

which individuals and groups obtain what they need and want through creating and

exchanging products and value with others (Kotler et al 1999)

In fact the American Marketing Association has its own definition of marketing

which considered marketing being ldquoan organisational function and a set of processes

for creating communicating and delivering value to customers and for managing

customer relationships in ways that benefit the organisation and its stakeholdersrdquo

There is no doubt that marketing has long been playing an essential role of developing

all kinds of businesses for all organisations Without proper marketing management

all kinds of businesses would have difficulty in developing effective marketing plans

9 25

implementing their marketing activities to capture more customers and market shares

and eventually helping to improve their business performance in our rapidly-changing

market environment around the world The global market has been changing so

quickly that leads to more uncertainties than ever before In light of this it is very

critical for all kinds of businesses to have effective marketing management in place to

help organisations to respond and react to the ever-changing environment

There are two kinds of environment for all kinds of businesses ie external and

internal environment Both of them can have great impact on all business

organizations the market places where they run businesses and the co-relationship

among all factors (Jobber 2006) In light of this it is very important Thus

understanding environment and using the environment scanning are important

activities for all marketers and organizations Denis A at al (2001) argued that the

marketing environment factors are often referred to as Social Technological

Economic and Political varibles (PEST) In reality the PEST framework for

environmental auditing has been widely used in business work

After analysis the external environment marketers can make decisions and take

relevant approaches to allow organizations to identify and capitalize opportunities

(Kotler et al 1999) Based upon this marketers can then conduct necessary research to

indentify the market segmentations ldquoMarketing research is an essential tool for the

10 25

marketing manager in helping to define and locate market segments and understand

their needs and wantsrdquo (Jobber 2006)

Fill (2009) argues that ldquosegmentation is necessary because a single product is unlikely

to meet the needs of all customers in a mass marketrdquo Thus with proper segmentation

organizations can effectively satisfy targeted customersrsquo needs

After the segmentation process marketers can move forward to utilize the techniques

of marketing mix to carry out the whole marketing activities ldquoFor most physical

goods the marketing mix consists of four elements product price place and

promotion For services the marketing mix can be extended to seven elements with

the addition of people processes and physical evidencerdquo (David Jobber 2006)

Whether marketers can effectively communicate messages to targeted customers or

audience is closely related to the promotion ie the marketing communications

which describe the most important areas of marketing (Pickton amp Hartley 1998) And

the marketing communication mix consists of five communication channels

advertising public relations personal selling direct marketing and sales

promotionFill C (2009)

11 25

With the systematic planning and effective implementation of relevant marketing

techniques marketers can ensure the products or service being successful in the

market

4 Marketing of Samsung

Samsung is one of the largest technology companies in the world founded in 1938 It

has almost 16000 employees in the world and its revenue for exceeds $117 billion in

2009 In the world most countries have Samsung Company Its headquarters are

located in Seoul South Korea Samsung has a big range of home appliances and

consumer electronics The company famous products in the world are TV ldquoGalaxyrdquo

tablet and mobile phones Now Samsung is the biggest mobile phones company in

the world

41 Marketing mix at Samsung

For the definition of marketing communications so far there is still no strict standard

According to Fill (2009) he declares that marketing communications is ldquoa manageme

nt process in which an organization engages with its various audiencesrdquo This include

s various kinds of activities From the view of Egan (2002) he thinks that marketing c

ommunications are ldquothe methods by which the suppliers who provide the goods value

s andor ideas services shows themselves to their target audiences aiming to stimulate

12 25

the dialogue successfully and form a better commercial or other relationshipsrdquo In oth

er words marketing communications are those things which can be transmitted from t

he company to the target audience Fill (2009) once says that there are four major func

tions ndash to differentiate to reinforce to inform and to persuade Selecting the first lette

rs of these four functions we can get DRIP Marketing communications are part of the

marketing mix which consists of Price Place Product and Promotion or the four Ps

According to Fill (2009) they consist of tools media and messages

42 Samsungrsquos message

Message can be defined as a set of symbols words and visual material (pictures

photos) that is sent to the target audience The company (in this case Samsung) could

be a sender as well as its brand name or someone who is advertising their products

(football players celebrities etc) (Kotler 2005) Kotler also argues that a message is

said to be good if it is easy to be understood by the target audience

Samsungrsquos brand main point is ldquoturn on tomorrowrdquo but sometime the company

develop is not follow its brand It stresses on the innovativeness of the companyrsquos

products The old message was ldquoeveryonersquos invitedrdquo but now the company does not

use the old message anymore The company has divided its messages to the target

audience in terms of the product range The main message that is attached to

13 25

Samsungrsquos new Galaxy tablets is ldquoLife without limitsrdquo All other messages regarding

this product range are related to the freedom that they provide In the USA the

message is ldquofeel free to Tabrdquo On the Samsungrsquos YouTube page one can see the same

messages

Samsungrsquos messages are emotional rather than rational That because the nature of the

Samsungrsquos products But there is a little of rational messages like ldquofeaturing a 7rdquo

screenrdquo which are necessary to show the product what the different between other

competitors I think that this type of messages is appropriate to be used If just use

emotional messages the customers may not know what exactly makes Samsungrsquos

products different than the others

43 Advertising at Samsung

Advertising is defined as ldquoany paid form of non-personal communication about an

organization product service or idea by an identified sponsorrdquo Belch amp Belch

(2002) When using advertising the message is normally transmitted via mass media ndash

TV radio newspapers etc A strong feature of advertising is that is can reach many

people sometimes even millions at the same time This is why it is used by large

companies (like Samsung) which aim to reach the mass market The company has

good control over the message and its design but there are almost no opportunities for

14 25

a feedback from the target audience Blythe (2006) argues that advertising has lower

credibility compared to the other marketing communication tools Therefore there is

no warranty that advertising will make the customers to buy the particular product or

service But it is an excellent tool for informing the target audience It is the most

expensive tool but has lowest price per customer reached Companies still spend

millions on advertising each year

Samsungrsquos advertisements are mainly emotional stressing the freedom that the

products provide but have a rational element stressing on their functionality Same

product carries the same type of information but stresses on the innovative technical

features (Google Maps with voice search etc) which explain why it is alleged to be

ldquothe best Android based smartphone in the worldrdquo

44 Sales promotion at Samsung

Belch amp Belch (2002) define sales promotion as ldquothose marketing activities that

provide extra value or incentives to the sales force the distributors or the ultimate

consumer and can stimulate immediate salesrdquo They key word here is ldquoimmediaterdquo

customers are inclined to act here and now Sales promotionsrsquo aim is to achieve short-

term increase in sales Baker (2007) argues that their credibility is at medium level

and the message is well controlled It is important for the sales promotion to continue

15 25

for a short period of time If it continues too long the customers may assume the

discounted price as a normal one and to postpone their buying decision until next

promotion

You can find all Samsung promotions on their website The customer can change the

country of residence to see the local promotions But the sites are different Due to

nature of the products the vast majority of sales promotions are of a lottery type where

there a big prize is won In my opinion the company uses this way not because to

increase its short-term sales but to increase the brand awareness and increase new

subscribers that who e-mail addresses will be used for direct marketing purposes

45 Social media at Samsung

Social media is a new phenomenon it develops speed very fast and more and more

important for the companyrsquos marketing communication The most powerful feature of

social networking is that it allows the customers and the company to into a dialogue

Word-of-Mouth that is spread around the social networks is another advantage

Samsung uses social media for both engaging with its customers and advertising It

has several Facebook pages divided by country and by product Galaxy product range

has fan pages but other products do not Similarly Samsung has fan pages in many

countries In my opinion Samsung still have many things can do by social media

16 25

5 Conclusion

Over the years all kinds of organisations have been undertaking varies of marketing

activities in order to increase their competitiveness in the market which allows them

to sustain their market shares and achieve organisational goals in the business world

Along with the development of mobile phone internet and personal computing

devices a new internet world emerges ie mobile internet In light of this there is a

new name for mobile phones that can effectively access to the internet ie

Smartphone

About the definition of IMC still no common agreement exist (Kim et al 2004) Som

e scholars think that IMC is a new concept while for others they support that the idea

of IMC is not new but just a more efficient way to manage the marketing communicat

ion tools (Kitchen amp Schultz 2009) In order to convey the messages clearly it is nec

essary for the customers to see and hear the same message This could be achieved onl

y if the different marketing communication tools support each-other

As we all know the company of Samsung owns more than $117 billion revenue in 20

11 with global technology (wwwsamsungcom) so much evidence about the integrati

on of the different communication tools could be found First the logo and the key me

ssages are globally standardized The Galaxy S tablet message is similar ndash ldquofreedomrdquo

17 25

ldquolive without limitsrdquo Other similar messages related to the feeling of being free are al

so attached to Galaxy S tablet worldwide

There is also a powerful integration between the different marketing communication t

ools and media For example integration between traditional and online media In ma

ny countries all sales promotions are integrated with direct marketing ndash customers are

required to provide their basic details and e-mails Social media is also very well integ

rated with sales promotions Print adverts are also integrated with sales promotion and

direct to the Samsung website

In an company such as Samsung the main thing creating difficulties is its size It is dif

ficult to co-ordinate the marketing activities in a company with nearly 160 000 emplo

yees Samsung has several official websites ndash the main site (Samsungcom) a site dev

oted only to mobile phone users in specific countries This could lead to confusion for

the customer and currently Samsung is merging these local sites with its global websit

e

18 25

References

Wall Street Journal (2009) Motorola Executive Helped spur Cellphone Revolution

Wall Street Journal 20ndash21 June 2009 p A10

Funk J 2001 The mobile Internet How Japan dialed up and the West disconnected

Pembroke Bermuda ISI Publications

19 25

Apple 2010 ldquoiPhone Developer Program License Agreementrdquo

httpwwwefforgfiles20100302_iphone_dev_agrpdf

Cusumano Michael 2010 ldquoTechnology Strategy and Management The Evolution of

Platform Thinkingrdquo Communications of the ACM 53 (1) 32-34

Martinez Salazar and Marco Martinez 2010 ldquoThe Mobile Phone User Identifying

Top Mobile Applicationsrdquo (April 1 2010) Available at SSRN

httpssrncomabstract=1691210

P Kotler (1980) Marketing Management 3th Edition Published by Prentice

Kotler P Armstrong G Saunders J And Wong V (1999) Principles of Marketing

2nd European edn Pretice- Hall

Denis Adcock Al Halborg and Caroline Ross(2001) Marketing Principles and

Practice 4th edn published by FT Prentice Hall

C Fill (2009) Marketing communications 5th edition Pearson Education

P Kotler (2009) Marketing Management European edition FT Prentice Hall

20 25

Ries A and trout J (1981) Positioning the Battle for Your Mind McGraw- Hall

David Jobber (2006) Principles and Practice of Marketing 6th edn published by

McGraw-Hill

Anderson PH 2001 Relationship development and marketing communication An

integrative model The Journal of Business and Industrial

Pickton D amp Hartley B (1998) Measuring integration an assessment of the quality

of integrated marketing communications International Journal of Advertising

D Schultz amp C Patti (2009) The evolution of IMC IMC in a customer-driven

marketplace Journal of Marketing Communications Vol 15 Nos 2ndash3 AprilndashJuly

2009 pp 75ndash84

L Percy (2008) Strategic integrated marketing communication theory and practice

Butterworth Heinemann

F Brassington amp S Pettitt (2007) Essentials of Marketing second edn FT Prentice

Hall

Spreng RA and Mackoy RD (1996) An empirical examination of a model of

21 25

perceived service quality and satisfaction Journal of Retailing Vol 72 pp 201-14

Shemwell DJ Yavas U and Bilgin Z 11130881998) ``Customer-service provider

relationships an empirical test of a model of service quality satisfaction and

relationship oriented outcome International Journal of Service Industry

Management Vol 9 pp 155-68

Newman K and Pyne T (1996) Quality matters junior doctorsrsquo perceptions

Journal of Management in Medicine Vol 10 No 4 pp 12-23

Morrison J(2006) The International Business Environment 2nd edition Published

by Palgrave MacMillan

Baker J (2007) Marketing strategy and management Publisher Palgrave Macmillan

Blythe J (2006) Marketing Published by SAGE

Egan J (2007) Marketing communications Published by Thomson Learning

Finne amp Gronroos (2009) ldquoRethinking marketing communication From integrated

marketing communication to relationship communicationrdquo Journal of Marketing

Communications Vol 15 Nos 2ndash3 AprilndashJuly 2009 179ndash195

22 25

Kotler P et al (2005) Principles of marketing 4th edition Publisher Pearson

Education

London Butterworth-Heinemann

Kotler P (2003) Marketing management 11th edition Publisher Pearson Education

Kim I Han D amp Schultz D (2004) ldquoUnderstanding the Diffusion of Integrated

Marketing Communicationsrdquo Journal of Advertising Research March 2004 pp 31-45

Kitchen P amp Schultz D (2009) ldquoIMC New horizonfalse dawn for a marketplace in

turmoilrdquo Journal of Marketing Communications Vol 15 Nos 2ndash3 AprilndashJuly

2009 197ndash204

Pickton D amp Broderick A (2005) Integrated Marketing Communications 2nd edition

Publisher Pearson Education

Russell E The fundamentals of marketing Publisher AVA Academia

httpnewscnetcom

23 25

httpwwwecirclecom

httpwwwyoutubecom

httpchroniclingamericalocgovlccnsn850424621906-05-21ed-1seq-7

httpwwwmsnbcmsncomid7432915nstechnology_and_science-wirelesstfirst-

cell-phone-true-brickT2o-y3mP5JE

httpwwwumtsworldcomumtshistoryhtm

Mobile market httpwwwgartnercomitpagejspid=1455314

httpwwwsamsungcom

24 25

  1. Widget PGBM 15 Marketing Management
Page 5: PGBM 15 Marketing Management

network on which the oldest cellular phone was operated

(httpwwwmsnbcmsncomid7432915nstechnology_and_science-wirelesstfirst-

cell-phone-true-brickT2o-y3mP5JE)

Along with the high demand of the mobile phone market the 2G (second generation)

network technology was launched in Finland in 1991 After ten years the 3G (third

generation) was launched in Japan (httpwwwumtsworldcomumtshistoryhtm)

With the rapid development of the new generation mobile technology the competition

of mobile phone industry has become more intense Both network operators and

mobile phone manufacturers have been investing huge amount of money to develop

new and advanced products to capture more users so that they can be profitable and

sustainable in their businesses

In recent years after the launch of 3G technology and 3G mobile phones it is very

obvious that new generation technology will be necessary for the huge growing

demand for higher speed of data transfer and more applications on the mobile phones

In the meantime the mobile phone manufacturers have also launched new series of

mobile phones to satisfy growing demand of more consumers Thus the mobile phone

industry has been developing very rapidly

22 Emergence of smartphones

4 25

Along with the development of mobile phone internet and personal computing

devices a new internet world emerges ie mobile internet (Funk 2001) In light of

this there is a new name for mobile phones that can effectively access to the internet

ie Smartphone Nowadays smartphones can not only provide users to use traditional

wireless voice talk but also allow them to access to the internet and use varied kinds

of software applications which is very important feature of smartphones that

differentiate themselves from traditional mobile phones

Because of the development of smartphones the whole industry has been changed

rapidly and has attracted great attention of all kinds of business players related to this

industry which includes mobile phone manufacturers internet service firms personal

computing device manufacturers and so on In light of this the smartphone actually

forms a new way of competition in the mobile phone industry Nowadays many

companies have believed that it is important for them to provide services or products

in the smartphone industry in order to create new business opportunities for their

future growth and profitability

There is lots of evidence that the smartphone industry has been rapidly growing For

example according to Gartnerrsquos statistics (2010) there were over 128 billion sets of

mobile phone sold in 2010 per se and the percentage of smartphones accounted for

over 20 of total amount In the meantime the growth of sales of smartphones has

5 25

been over 100 over the past years By 2012 it was estimated that the total sales of

smartphones would be more than those of PCs in the global market In addition the

Gartnerrsquos statistics indicate that by 2014 the total revenues generated from all mobile

devices including smartphones e-books and related services applied on these

devices would be more than US$10 trillion Furthermore by 2015 the total number

of smartphone users would be more than 2 billion based upon the forecasted growth

rate of smartphones and the forecasted declining costs of all kinds of components

From the above it is very obvious that the traditional mobile phones have been

replaced by smartphones in a rapid way Although this trend just started several years

ago when Apple Inc launched its first iPhone in 2007 (wwwapplecom) the speed of

change has convinced the market that the future of mobile phones belongs to

smartphones Accordingly the competition of the industry has become more

complicated and intense because of the emergence of smartphones

23 Changes of leadership in the mobile phone market

There are numerous manufacturers of mobile phones around the world Before 2010

the leading manufacturer of mobile phone is the Nokia According to the Gartnerrsquos

statistics (2010) Nokiarsquos market shares of mobile phones was about 60 of total

global sales during its peak performance Nokia has long been considered as a leader

6 25

in the low-end markets where it has dominant positions and markets are mostly in the

developing countries Despite of its strong positions in those low-end markets

statistics show that Nokiarsquos market shares in those markets have decreased to less

than 30 by 2010

In fact Symbian is Nokiarsquos operating system that has long been used on many

smartphones According to Gartnerrsquos statistics (2010) over 60 of all kinds of

smartphones used the Symbian as their operating systems in the year of 2007 when

the Windows operating system only accounted for about 11 of the total market

shares and the iPhone operating system only about 6 of total amount At the time

Nokia was the true leader in the smartphone industry in which it alone had more than

50 of the market shares all around the world

However Nokia has been losing its leadership position in the smartphone industry

according to Gartnerrsquos statistics (2010) By 2010 there were only about 36 of all

kinds smartphones using its Symbian as the operating system while Googlersquos

Android accounted for about 26 of the total and iPhone accounted for about 16 of

total

When it comes to iPhone it is the first real smartphone launched in the market in

2007 which in fact has great impact on the whole mobile phone industry Applersquos

7 25

iPhone indeed recreates the mobile phone standards in the history It does not only

provide an easy and friendly user environment that allows all to browse internet on

the iPhone but also it has leverage all different systems in the Apple devices and

applications which has namely been called the ecosystem According to Salazar et al

(2010) the key reason why iPhone has great usersrsquo acception and adoption is because

of innovations on iPhone in many ways From a media and digital device provider to a

smartphone provider Apple has an unique ecosystem that includes several platforms

on which iPhone can leverage successfully This has in fact great barrier for other

competitors to follow and react to it (Cusmano 2010) Therefore the launch of

iPhone has indeed taken away many market shares of key players in the industry

including the old time leader ie Nokia

As for Google it has its own unique business model as well which is different from

others It did not enter the smartphone industry until it acquired the operating system

ie Android Since then the Google has successfully entered the smartphone industry

by allowing all software developers to play on the Android system Because the

Android is a open system it has then attracted not only software developers but also

weaker mobile phone manufacturers that have great intention to develop their own

competitive smartphone products which include Samsung With the quick expansion

of Android system the Google rapidly captures the market shares in the smartphone

industry which accounted for about 25 of the total in 2010 With its Android the

8 25

Google has won the confidence of most mobile phone manufacturers around the

world according to the statistics of the Canalys (2010)

3 The importance of marketing management

The marketing guru Philip Kotler has contributed to the development of marketing

management in our modern world According to his early publications the marketing

definition is the human activity directed at satisfying needs and wants through an

exchange process (Kotler 1980) Along with the development of the market and

management theories Kotler and other marketing professionals added more meanings

into the definition of the marketing Marketing is a social managerial process by

which individuals and groups obtain what they need and want through creating and

exchanging products and value with others (Kotler et al 1999)

In fact the American Marketing Association has its own definition of marketing

which considered marketing being ldquoan organisational function and a set of processes

for creating communicating and delivering value to customers and for managing

customer relationships in ways that benefit the organisation and its stakeholdersrdquo

There is no doubt that marketing has long been playing an essential role of developing

all kinds of businesses for all organisations Without proper marketing management

all kinds of businesses would have difficulty in developing effective marketing plans

9 25

implementing their marketing activities to capture more customers and market shares

and eventually helping to improve their business performance in our rapidly-changing

market environment around the world The global market has been changing so

quickly that leads to more uncertainties than ever before In light of this it is very

critical for all kinds of businesses to have effective marketing management in place to

help organisations to respond and react to the ever-changing environment

There are two kinds of environment for all kinds of businesses ie external and

internal environment Both of them can have great impact on all business

organizations the market places where they run businesses and the co-relationship

among all factors (Jobber 2006) In light of this it is very important Thus

understanding environment and using the environment scanning are important

activities for all marketers and organizations Denis A at al (2001) argued that the

marketing environment factors are often referred to as Social Technological

Economic and Political varibles (PEST) In reality the PEST framework for

environmental auditing has been widely used in business work

After analysis the external environment marketers can make decisions and take

relevant approaches to allow organizations to identify and capitalize opportunities

(Kotler et al 1999) Based upon this marketers can then conduct necessary research to

indentify the market segmentations ldquoMarketing research is an essential tool for the

10 25

marketing manager in helping to define and locate market segments and understand

their needs and wantsrdquo (Jobber 2006)

Fill (2009) argues that ldquosegmentation is necessary because a single product is unlikely

to meet the needs of all customers in a mass marketrdquo Thus with proper segmentation

organizations can effectively satisfy targeted customersrsquo needs

After the segmentation process marketers can move forward to utilize the techniques

of marketing mix to carry out the whole marketing activities ldquoFor most physical

goods the marketing mix consists of four elements product price place and

promotion For services the marketing mix can be extended to seven elements with

the addition of people processes and physical evidencerdquo (David Jobber 2006)

Whether marketers can effectively communicate messages to targeted customers or

audience is closely related to the promotion ie the marketing communications

which describe the most important areas of marketing (Pickton amp Hartley 1998) And

the marketing communication mix consists of five communication channels

advertising public relations personal selling direct marketing and sales

promotionFill C (2009)

11 25

With the systematic planning and effective implementation of relevant marketing

techniques marketers can ensure the products or service being successful in the

market

4 Marketing of Samsung

Samsung is one of the largest technology companies in the world founded in 1938 It

has almost 16000 employees in the world and its revenue for exceeds $117 billion in

2009 In the world most countries have Samsung Company Its headquarters are

located in Seoul South Korea Samsung has a big range of home appliances and

consumer electronics The company famous products in the world are TV ldquoGalaxyrdquo

tablet and mobile phones Now Samsung is the biggest mobile phones company in

the world

41 Marketing mix at Samsung

For the definition of marketing communications so far there is still no strict standard

According to Fill (2009) he declares that marketing communications is ldquoa manageme

nt process in which an organization engages with its various audiencesrdquo This include

s various kinds of activities From the view of Egan (2002) he thinks that marketing c

ommunications are ldquothe methods by which the suppliers who provide the goods value

s andor ideas services shows themselves to their target audiences aiming to stimulate

12 25

the dialogue successfully and form a better commercial or other relationshipsrdquo In oth

er words marketing communications are those things which can be transmitted from t

he company to the target audience Fill (2009) once says that there are four major func

tions ndash to differentiate to reinforce to inform and to persuade Selecting the first lette

rs of these four functions we can get DRIP Marketing communications are part of the

marketing mix which consists of Price Place Product and Promotion or the four Ps

According to Fill (2009) they consist of tools media and messages

42 Samsungrsquos message

Message can be defined as a set of symbols words and visual material (pictures

photos) that is sent to the target audience The company (in this case Samsung) could

be a sender as well as its brand name or someone who is advertising their products

(football players celebrities etc) (Kotler 2005) Kotler also argues that a message is

said to be good if it is easy to be understood by the target audience

Samsungrsquos brand main point is ldquoturn on tomorrowrdquo but sometime the company

develop is not follow its brand It stresses on the innovativeness of the companyrsquos

products The old message was ldquoeveryonersquos invitedrdquo but now the company does not

use the old message anymore The company has divided its messages to the target

audience in terms of the product range The main message that is attached to

13 25

Samsungrsquos new Galaxy tablets is ldquoLife without limitsrdquo All other messages regarding

this product range are related to the freedom that they provide In the USA the

message is ldquofeel free to Tabrdquo On the Samsungrsquos YouTube page one can see the same

messages

Samsungrsquos messages are emotional rather than rational That because the nature of the

Samsungrsquos products But there is a little of rational messages like ldquofeaturing a 7rdquo

screenrdquo which are necessary to show the product what the different between other

competitors I think that this type of messages is appropriate to be used If just use

emotional messages the customers may not know what exactly makes Samsungrsquos

products different than the others

43 Advertising at Samsung

Advertising is defined as ldquoany paid form of non-personal communication about an

organization product service or idea by an identified sponsorrdquo Belch amp Belch

(2002) When using advertising the message is normally transmitted via mass media ndash

TV radio newspapers etc A strong feature of advertising is that is can reach many

people sometimes even millions at the same time This is why it is used by large

companies (like Samsung) which aim to reach the mass market The company has

good control over the message and its design but there are almost no opportunities for

14 25

a feedback from the target audience Blythe (2006) argues that advertising has lower

credibility compared to the other marketing communication tools Therefore there is

no warranty that advertising will make the customers to buy the particular product or

service But it is an excellent tool for informing the target audience It is the most

expensive tool but has lowest price per customer reached Companies still spend

millions on advertising each year

Samsungrsquos advertisements are mainly emotional stressing the freedom that the

products provide but have a rational element stressing on their functionality Same

product carries the same type of information but stresses on the innovative technical

features (Google Maps with voice search etc) which explain why it is alleged to be

ldquothe best Android based smartphone in the worldrdquo

44 Sales promotion at Samsung

Belch amp Belch (2002) define sales promotion as ldquothose marketing activities that

provide extra value or incentives to the sales force the distributors or the ultimate

consumer and can stimulate immediate salesrdquo They key word here is ldquoimmediaterdquo

customers are inclined to act here and now Sales promotionsrsquo aim is to achieve short-

term increase in sales Baker (2007) argues that their credibility is at medium level

and the message is well controlled It is important for the sales promotion to continue

15 25

for a short period of time If it continues too long the customers may assume the

discounted price as a normal one and to postpone their buying decision until next

promotion

You can find all Samsung promotions on their website The customer can change the

country of residence to see the local promotions But the sites are different Due to

nature of the products the vast majority of sales promotions are of a lottery type where

there a big prize is won In my opinion the company uses this way not because to

increase its short-term sales but to increase the brand awareness and increase new

subscribers that who e-mail addresses will be used for direct marketing purposes

45 Social media at Samsung

Social media is a new phenomenon it develops speed very fast and more and more

important for the companyrsquos marketing communication The most powerful feature of

social networking is that it allows the customers and the company to into a dialogue

Word-of-Mouth that is spread around the social networks is another advantage

Samsung uses social media for both engaging with its customers and advertising It

has several Facebook pages divided by country and by product Galaxy product range

has fan pages but other products do not Similarly Samsung has fan pages in many

countries In my opinion Samsung still have many things can do by social media

16 25

5 Conclusion

Over the years all kinds of organisations have been undertaking varies of marketing

activities in order to increase their competitiveness in the market which allows them

to sustain their market shares and achieve organisational goals in the business world

Along with the development of mobile phone internet and personal computing

devices a new internet world emerges ie mobile internet In light of this there is a

new name for mobile phones that can effectively access to the internet ie

Smartphone

About the definition of IMC still no common agreement exist (Kim et al 2004) Som

e scholars think that IMC is a new concept while for others they support that the idea

of IMC is not new but just a more efficient way to manage the marketing communicat

ion tools (Kitchen amp Schultz 2009) In order to convey the messages clearly it is nec

essary for the customers to see and hear the same message This could be achieved onl

y if the different marketing communication tools support each-other

As we all know the company of Samsung owns more than $117 billion revenue in 20

11 with global technology (wwwsamsungcom) so much evidence about the integrati

on of the different communication tools could be found First the logo and the key me

ssages are globally standardized The Galaxy S tablet message is similar ndash ldquofreedomrdquo

17 25

ldquolive without limitsrdquo Other similar messages related to the feeling of being free are al

so attached to Galaxy S tablet worldwide

There is also a powerful integration between the different marketing communication t

ools and media For example integration between traditional and online media In ma

ny countries all sales promotions are integrated with direct marketing ndash customers are

required to provide their basic details and e-mails Social media is also very well integ

rated with sales promotions Print adverts are also integrated with sales promotion and

direct to the Samsung website

In an company such as Samsung the main thing creating difficulties is its size It is dif

ficult to co-ordinate the marketing activities in a company with nearly 160 000 emplo

yees Samsung has several official websites ndash the main site (Samsungcom) a site dev

oted only to mobile phone users in specific countries This could lead to confusion for

the customer and currently Samsung is merging these local sites with its global websit

e

18 25

References

Wall Street Journal (2009) Motorola Executive Helped spur Cellphone Revolution

Wall Street Journal 20ndash21 June 2009 p A10

Funk J 2001 The mobile Internet How Japan dialed up and the West disconnected

Pembroke Bermuda ISI Publications

19 25

Apple 2010 ldquoiPhone Developer Program License Agreementrdquo

httpwwwefforgfiles20100302_iphone_dev_agrpdf

Cusumano Michael 2010 ldquoTechnology Strategy and Management The Evolution of

Platform Thinkingrdquo Communications of the ACM 53 (1) 32-34

Martinez Salazar and Marco Martinez 2010 ldquoThe Mobile Phone User Identifying

Top Mobile Applicationsrdquo (April 1 2010) Available at SSRN

httpssrncomabstract=1691210

P Kotler (1980) Marketing Management 3th Edition Published by Prentice

Kotler P Armstrong G Saunders J And Wong V (1999) Principles of Marketing

2nd European edn Pretice- Hall

Denis Adcock Al Halborg and Caroline Ross(2001) Marketing Principles and

Practice 4th edn published by FT Prentice Hall

C Fill (2009) Marketing communications 5th edition Pearson Education

P Kotler (2009) Marketing Management European edition FT Prentice Hall

20 25

Ries A and trout J (1981) Positioning the Battle for Your Mind McGraw- Hall

David Jobber (2006) Principles and Practice of Marketing 6th edn published by

McGraw-Hill

Anderson PH 2001 Relationship development and marketing communication An

integrative model The Journal of Business and Industrial

Pickton D amp Hartley B (1998) Measuring integration an assessment of the quality

of integrated marketing communications International Journal of Advertising

D Schultz amp C Patti (2009) The evolution of IMC IMC in a customer-driven

marketplace Journal of Marketing Communications Vol 15 Nos 2ndash3 AprilndashJuly

2009 pp 75ndash84

L Percy (2008) Strategic integrated marketing communication theory and practice

Butterworth Heinemann

F Brassington amp S Pettitt (2007) Essentials of Marketing second edn FT Prentice

Hall

Spreng RA and Mackoy RD (1996) An empirical examination of a model of

21 25

perceived service quality and satisfaction Journal of Retailing Vol 72 pp 201-14

Shemwell DJ Yavas U and Bilgin Z 11130881998) ``Customer-service provider

relationships an empirical test of a model of service quality satisfaction and

relationship oriented outcome International Journal of Service Industry

Management Vol 9 pp 155-68

Newman K and Pyne T (1996) Quality matters junior doctorsrsquo perceptions

Journal of Management in Medicine Vol 10 No 4 pp 12-23

Morrison J(2006) The International Business Environment 2nd edition Published

by Palgrave MacMillan

Baker J (2007) Marketing strategy and management Publisher Palgrave Macmillan

Blythe J (2006) Marketing Published by SAGE

Egan J (2007) Marketing communications Published by Thomson Learning

Finne amp Gronroos (2009) ldquoRethinking marketing communication From integrated

marketing communication to relationship communicationrdquo Journal of Marketing

Communications Vol 15 Nos 2ndash3 AprilndashJuly 2009 179ndash195

22 25

Kotler P et al (2005) Principles of marketing 4th edition Publisher Pearson

Education

London Butterworth-Heinemann

Kotler P (2003) Marketing management 11th edition Publisher Pearson Education

Kim I Han D amp Schultz D (2004) ldquoUnderstanding the Diffusion of Integrated

Marketing Communicationsrdquo Journal of Advertising Research March 2004 pp 31-45

Kitchen P amp Schultz D (2009) ldquoIMC New horizonfalse dawn for a marketplace in

turmoilrdquo Journal of Marketing Communications Vol 15 Nos 2ndash3 AprilndashJuly

2009 197ndash204

Pickton D amp Broderick A (2005) Integrated Marketing Communications 2nd edition

Publisher Pearson Education

Russell E The fundamentals of marketing Publisher AVA Academia

httpnewscnetcom

23 25

httpwwwecirclecom

httpwwwyoutubecom

httpchroniclingamericalocgovlccnsn850424621906-05-21ed-1seq-7

httpwwwmsnbcmsncomid7432915nstechnology_and_science-wirelesstfirst-

cell-phone-true-brickT2o-y3mP5JE

httpwwwumtsworldcomumtshistoryhtm

Mobile market httpwwwgartnercomitpagejspid=1455314

httpwwwsamsungcom

24 25

  1. Widget PGBM 15 Marketing Management
Page 6: PGBM 15 Marketing Management

Along with the development of mobile phone internet and personal computing

devices a new internet world emerges ie mobile internet (Funk 2001) In light of

this there is a new name for mobile phones that can effectively access to the internet

ie Smartphone Nowadays smartphones can not only provide users to use traditional

wireless voice talk but also allow them to access to the internet and use varied kinds

of software applications which is very important feature of smartphones that

differentiate themselves from traditional mobile phones

Because of the development of smartphones the whole industry has been changed

rapidly and has attracted great attention of all kinds of business players related to this

industry which includes mobile phone manufacturers internet service firms personal

computing device manufacturers and so on In light of this the smartphone actually

forms a new way of competition in the mobile phone industry Nowadays many

companies have believed that it is important for them to provide services or products

in the smartphone industry in order to create new business opportunities for their

future growth and profitability

There is lots of evidence that the smartphone industry has been rapidly growing For

example according to Gartnerrsquos statistics (2010) there were over 128 billion sets of

mobile phone sold in 2010 per se and the percentage of smartphones accounted for

over 20 of total amount In the meantime the growth of sales of smartphones has

5 25

been over 100 over the past years By 2012 it was estimated that the total sales of

smartphones would be more than those of PCs in the global market In addition the

Gartnerrsquos statistics indicate that by 2014 the total revenues generated from all mobile

devices including smartphones e-books and related services applied on these

devices would be more than US$10 trillion Furthermore by 2015 the total number

of smartphone users would be more than 2 billion based upon the forecasted growth

rate of smartphones and the forecasted declining costs of all kinds of components

From the above it is very obvious that the traditional mobile phones have been

replaced by smartphones in a rapid way Although this trend just started several years

ago when Apple Inc launched its first iPhone in 2007 (wwwapplecom) the speed of

change has convinced the market that the future of mobile phones belongs to

smartphones Accordingly the competition of the industry has become more

complicated and intense because of the emergence of smartphones

23 Changes of leadership in the mobile phone market

There are numerous manufacturers of mobile phones around the world Before 2010

the leading manufacturer of mobile phone is the Nokia According to the Gartnerrsquos

statistics (2010) Nokiarsquos market shares of mobile phones was about 60 of total

global sales during its peak performance Nokia has long been considered as a leader

6 25

in the low-end markets where it has dominant positions and markets are mostly in the

developing countries Despite of its strong positions in those low-end markets

statistics show that Nokiarsquos market shares in those markets have decreased to less

than 30 by 2010

In fact Symbian is Nokiarsquos operating system that has long been used on many

smartphones According to Gartnerrsquos statistics (2010) over 60 of all kinds of

smartphones used the Symbian as their operating systems in the year of 2007 when

the Windows operating system only accounted for about 11 of the total market

shares and the iPhone operating system only about 6 of total amount At the time

Nokia was the true leader in the smartphone industry in which it alone had more than

50 of the market shares all around the world

However Nokia has been losing its leadership position in the smartphone industry

according to Gartnerrsquos statistics (2010) By 2010 there were only about 36 of all

kinds smartphones using its Symbian as the operating system while Googlersquos

Android accounted for about 26 of the total and iPhone accounted for about 16 of

total

When it comes to iPhone it is the first real smartphone launched in the market in

2007 which in fact has great impact on the whole mobile phone industry Applersquos

7 25

iPhone indeed recreates the mobile phone standards in the history It does not only

provide an easy and friendly user environment that allows all to browse internet on

the iPhone but also it has leverage all different systems in the Apple devices and

applications which has namely been called the ecosystem According to Salazar et al

(2010) the key reason why iPhone has great usersrsquo acception and adoption is because

of innovations on iPhone in many ways From a media and digital device provider to a

smartphone provider Apple has an unique ecosystem that includes several platforms

on which iPhone can leverage successfully This has in fact great barrier for other

competitors to follow and react to it (Cusmano 2010) Therefore the launch of

iPhone has indeed taken away many market shares of key players in the industry

including the old time leader ie Nokia

As for Google it has its own unique business model as well which is different from

others It did not enter the smartphone industry until it acquired the operating system

ie Android Since then the Google has successfully entered the smartphone industry

by allowing all software developers to play on the Android system Because the

Android is a open system it has then attracted not only software developers but also

weaker mobile phone manufacturers that have great intention to develop their own

competitive smartphone products which include Samsung With the quick expansion

of Android system the Google rapidly captures the market shares in the smartphone

industry which accounted for about 25 of the total in 2010 With its Android the

8 25

Google has won the confidence of most mobile phone manufacturers around the

world according to the statistics of the Canalys (2010)

3 The importance of marketing management

The marketing guru Philip Kotler has contributed to the development of marketing

management in our modern world According to his early publications the marketing

definition is the human activity directed at satisfying needs and wants through an

exchange process (Kotler 1980) Along with the development of the market and

management theories Kotler and other marketing professionals added more meanings

into the definition of the marketing Marketing is a social managerial process by

which individuals and groups obtain what they need and want through creating and

exchanging products and value with others (Kotler et al 1999)

In fact the American Marketing Association has its own definition of marketing

which considered marketing being ldquoan organisational function and a set of processes

for creating communicating and delivering value to customers and for managing

customer relationships in ways that benefit the organisation and its stakeholdersrdquo

There is no doubt that marketing has long been playing an essential role of developing

all kinds of businesses for all organisations Without proper marketing management

all kinds of businesses would have difficulty in developing effective marketing plans

9 25

implementing their marketing activities to capture more customers and market shares

and eventually helping to improve their business performance in our rapidly-changing

market environment around the world The global market has been changing so

quickly that leads to more uncertainties than ever before In light of this it is very

critical for all kinds of businesses to have effective marketing management in place to

help organisations to respond and react to the ever-changing environment

There are two kinds of environment for all kinds of businesses ie external and

internal environment Both of them can have great impact on all business

organizations the market places where they run businesses and the co-relationship

among all factors (Jobber 2006) In light of this it is very important Thus

understanding environment and using the environment scanning are important

activities for all marketers and organizations Denis A at al (2001) argued that the

marketing environment factors are often referred to as Social Technological

Economic and Political varibles (PEST) In reality the PEST framework for

environmental auditing has been widely used in business work

After analysis the external environment marketers can make decisions and take

relevant approaches to allow organizations to identify and capitalize opportunities

(Kotler et al 1999) Based upon this marketers can then conduct necessary research to

indentify the market segmentations ldquoMarketing research is an essential tool for the

10 25

marketing manager in helping to define and locate market segments and understand

their needs and wantsrdquo (Jobber 2006)

Fill (2009) argues that ldquosegmentation is necessary because a single product is unlikely

to meet the needs of all customers in a mass marketrdquo Thus with proper segmentation

organizations can effectively satisfy targeted customersrsquo needs

After the segmentation process marketers can move forward to utilize the techniques

of marketing mix to carry out the whole marketing activities ldquoFor most physical

goods the marketing mix consists of four elements product price place and

promotion For services the marketing mix can be extended to seven elements with

the addition of people processes and physical evidencerdquo (David Jobber 2006)

Whether marketers can effectively communicate messages to targeted customers or

audience is closely related to the promotion ie the marketing communications

which describe the most important areas of marketing (Pickton amp Hartley 1998) And

the marketing communication mix consists of five communication channels

advertising public relations personal selling direct marketing and sales

promotionFill C (2009)

11 25

With the systematic planning and effective implementation of relevant marketing

techniques marketers can ensure the products or service being successful in the

market

4 Marketing of Samsung

Samsung is one of the largest technology companies in the world founded in 1938 It

has almost 16000 employees in the world and its revenue for exceeds $117 billion in

2009 In the world most countries have Samsung Company Its headquarters are

located in Seoul South Korea Samsung has a big range of home appliances and

consumer electronics The company famous products in the world are TV ldquoGalaxyrdquo

tablet and mobile phones Now Samsung is the biggest mobile phones company in

the world

41 Marketing mix at Samsung

For the definition of marketing communications so far there is still no strict standard

According to Fill (2009) he declares that marketing communications is ldquoa manageme

nt process in which an organization engages with its various audiencesrdquo This include

s various kinds of activities From the view of Egan (2002) he thinks that marketing c

ommunications are ldquothe methods by which the suppliers who provide the goods value

s andor ideas services shows themselves to their target audiences aiming to stimulate

12 25

the dialogue successfully and form a better commercial or other relationshipsrdquo In oth

er words marketing communications are those things which can be transmitted from t

he company to the target audience Fill (2009) once says that there are four major func

tions ndash to differentiate to reinforce to inform and to persuade Selecting the first lette

rs of these four functions we can get DRIP Marketing communications are part of the

marketing mix which consists of Price Place Product and Promotion or the four Ps

According to Fill (2009) they consist of tools media and messages

42 Samsungrsquos message

Message can be defined as a set of symbols words and visual material (pictures

photos) that is sent to the target audience The company (in this case Samsung) could

be a sender as well as its brand name or someone who is advertising their products

(football players celebrities etc) (Kotler 2005) Kotler also argues that a message is

said to be good if it is easy to be understood by the target audience

Samsungrsquos brand main point is ldquoturn on tomorrowrdquo but sometime the company

develop is not follow its brand It stresses on the innovativeness of the companyrsquos

products The old message was ldquoeveryonersquos invitedrdquo but now the company does not

use the old message anymore The company has divided its messages to the target

audience in terms of the product range The main message that is attached to

13 25

Samsungrsquos new Galaxy tablets is ldquoLife without limitsrdquo All other messages regarding

this product range are related to the freedom that they provide In the USA the

message is ldquofeel free to Tabrdquo On the Samsungrsquos YouTube page one can see the same

messages

Samsungrsquos messages are emotional rather than rational That because the nature of the

Samsungrsquos products But there is a little of rational messages like ldquofeaturing a 7rdquo

screenrdquo which are necessary to show the product what the different between other

competitors I think that this type of messages is appropriate to be used If just use

emotional messages the customers may not know what exactly makes Samsungrsquos

products different than the others

43 Advertising at Samsung

Advertising is defined as ldquoany paid form of non-personal communication about an

organization product service or idea by an identified sponsorrdquo Belch amp Belch

(2002) When using advertising the message is normally transmitted via mass media ndash

TV radio newspapers etc A strong feature of advertising is that is can reach many

people sometimes even millions at the same time This is why it is used by large

companies (like Samsung) which aim to reach the mass market The company has

good control over the message and its design but there are almost no opportunities for

14 25

a feedback from the target audience Blythe (2006) argues that advertising has lower

credibility compared to the other marketing communication tools Therefore there is

no warranty that advertising will make the customers to buy the particular product or

service But it is an excellent tool for informing the target audience It is the most

expensive tool but has lowest price per customer reached Companies still spend

millions on advertising each year

Samsungrsquos advertisements are mainly emotional stressing the freedom that the

products provide but have a rational element stressing on their functionality Same

product carries the same type of information but stresses on the innovative technical

features (Google Maps with voice search etc) which explain why it is alleged to be

ldquothe best Android based smartphone in the worldrdquo

44 Sales promotion at Samsung

Belch amp Belch (2002) define sales promotion as ldquothose marketing activities that

provide extra value or incentives to the sales force the distributors or the ultimate

consumer and can stimulate immediate salesrdquo They key word here is ldquoimmediaterdquo

customers are inclined to act here and now Sales promotionsrsquo aim is to achieve short-

term increase in sales Baker (2007) argues that their credibility is at medium level

and the message is well controlled It is important for the sales promotion to continue

15 25

for a short period of time If it continues too long the customers may assume the

discounted price as a normal one and to postpone their buying decision until next

promotion

You can find all Samsung promotions on their website The customer can change the

country of residence to see the local promotions But the sites are different Due to

nature of the products the vast majority of sales promotions are of a lottery type where

there a big prize is won In my opinion the company uses this way not because to

increase its short-term sales but to increase the brand awareness and increase new

subscribers that who e-mail addresses will be used for direct marketing purposes

45 Social media at Samsung

Social media is a new phenomenon it develops speed very fast and more and more

important for the companyrsquos marketing communication The most powerful feature of

social networking is that it allows the customers and the company to into a dialogue

Word-of-Mouth that is spread around the social networks is another advantage

Samsung uses social media for both engaging with its customers and advertising It

has several Facebook pages divided by country and by product Galaxy product range

has fan pages but other products do not Similarly Samsung has fan pages in many

countries In my opinion Samsung still have many things can do by social media

16 25

5 Conclusion

Over the years all kinds of organisations have been undertaking varies of marketing

activities in order to increase their competitiveness in the market which allows them

to sustain their market shares and achieve organisational goals in the business world

Along with the development of mobile phone internet and personal computing

devices a new internet world emerges ie mobile internet In light of this there is a

new name for mobile phones that can effectively access to the internet ie

Smartphone

About the definition of IMC still no common agreement exist (Kim et al 2004) Som

e scholars think that IMC is a new concept while for others they support that the idea

of IMC is not new but just a more efficient way to manage the marketing communicat

ion tools (Kitchen amp Schultz 2009) In order to convey the messages clearly it is nec

essary for the customers to see and hear the same message This could be achieved onl

y if the different marketing communication tools support each-other

As we all know the company of Samsung owns more than $117 billion revenue in 20

11 with global technology (wwwsamsungcom) so much evidence about the integrati

on of the different communication tools could be found First the logo and the key me

ssages are globally standardized The Galaxy S tablet message is similar ndash ldquofreedomrdquo

17 25

ldquolive without limitsrdquo Other similar messages related to the feeling of being free are al

so attached to Galaxy S tablet worldwide

There is also a powerful integration between the different marketing communication t

ools and media For example integration between traditional and online media In ma

ny countries all sales promotions are integrated with direct marketing ndash customers are

required to provide their basic details and e-mails Social media is also very well integ

rated with sales promotions Print adverts are also integrated with sales promotion and

direct to the Samsung website

In an company such as Samsung the main thing creating difficulties is its size It is dif

ficult to co-ordinate the marketing activities in a company with nearly 160 000 emplo

yees Samsung has several official websites ndash the main site (Samsungcom) a site dev

oted only to mobile phone users in specific countries This could lead to confusion for

the customer and currently Samsung is merging these local sites with its global websit

e

18 25

References

Wall Street Journal (2009) Motorola Executive Helped spur Cellphone Revolution

Wall Street Journal 20ndash21 June 2009 p A10

Funk J 2001 The mobile Internet How Japan dialed up and the West disconnected

Pembroke Bermuda ISI Publications

19 25

Apple 2010 ldquoiPhone Developer Program License Agreementrdquo

httpwwwefforgfiles20100302_iphone_dev_agrpdf

Cusumano Michael 2010 ldquoTechnology Strategy and Management The Evolution of

Platform Thinkingrdquo Communications of the ACM 53 (1) 32-34

Martinez Salazar and Marco Martinez 2010 ldquoThe Mobile Phone User Identifying

Top Mobile Applicationsrdquo (April 1 2010) Available at SSRN

httpssrncomabstract=1691210

P Kotler (1980) Marketing Management 3th Edition Published by Prentice

Kotler P Armstrong G Saunders J And Wong V (1999) Principles of Marketing

2nd European edn Pretice- Hall

Denis Adcock Al Halborg and Caroline Ross(2001) Marketing Principles and

Practice 4th edn published by FT Prentice Hall

C Fill (2009) Marketing communications 5th edition Pearson Education

P Kotler (2009) Marketing Management European edition FT Prentice Hall

20 25

Ries A and trout J (1981) Positioning the Battle for Your Mind McGraw- Hall

David Jobber (2006) Principles and Practice of Marketing 6th edn published by

McGraw-Hill

Anderson PH 2001 Relationship development and marketing communication An

integrative model The Journal of Business and Industrial

Pickton D amp Hartley B (1998) Measuring integration an assessment of the quality

of integrated marketing communications International Journal of Advertising

D Schultz amp C Patti (2009) The evolution of IMC IMC in a customer-driven

marketplace Journal of Marketing Communications Vol 15 Nos 2ndash3 AprilndashJuly

2009 pp 75ndash84

L Percy (2008) Strategic integrated marketing communication theory and practice

Butterworth Heinemann

F Brassington amp S Pettitt (2007) Essentials of Marketing second edn FT Prentice

Hall

Spreng RA and Mackoy RD (1996) An empirical examination of a model of

21 25

perceived service quality and satisfaction Journal of Retailing Vol 72 pp 201-14

Shemwell DJ Yavas U and Bilgin Z 11130881998) ``Customer-service provider

relationships an empirical test of a model of service quality satisfaction and

relationship oriented outcome International Journal of Service Industry

Management Vol 9 pp 155-68

Newman K and Pyne T (1996) Quality matters junior doctorsrsquo perceptions

Journal of Management in Medicine Vol 10 No 4 pp 12-23

Morrison J(2006) The International Business Environment 2nd edition Published

by Palgrave MacMillan

Baker J (2007) Marketing strategy and management Publisher Palgrave Macmillan

Blythe J (2006) Marketing Published by SAGE

Egan J (2007) Marketing communications Published by Thomson Learning

Finne amp Gronroos (2009) ldquoRethinking marketing communication From integrated

marketing communication to relationship communicationrdquo Journal of Marketing

Communications Vol 15 Nos 2ndash3 AprilndashJuly 2009 179ndash195

22 25

Kotler P et al (2005) Principles of marketing 4th edition Publisher Pearson

Education

London Butterworth-Heinemann

Kotler P (2003) Marketing management 11th edition Publisher Pearson Education

Kim I Han D amp Schultz D (2004) ldquoUnderstanding the Diffusion of Integrated

Marketing Communicationsrdquo Journal of Advertising Research March 2004 pp 31-45

Kitchen P amp Schultz D (2009) ldquoIMC New horizonfalse dawn for a marketplace in

turmoilrdquo Journal of Marketing Communications Vol 15 Nos 2ndash3 AprilndashJuly

2009 197ndash204

Pickton D amp Broderick A (2005) Integrated Marketing Communications 2nd edition

Publisher Pearson Education

Russell E The fundamentals of marketing Publisher AVA Academia

httpnewscnetcom

23 25

httpwwwecirclecom

httpwwwyoutubecom

httpchroniclingamericalocgovlccnsn850424621906-05-21ed-1seq-7

httpwwwmsnbcmsncomid7432915nstechnology_and_science-wirelesstfirst-

cell-phone-true-brickT2o-y3mP5JE

httpwwwumtsworldcomumtshistoryhtm

Mobile market httpwwwgartnercomitpagejspid=1455314

httpwwwsamsungcom

24 25

  1. Widget PGBM 15 Marketing Management
Page 7: PGBM 15 Marketing Management

been over 100 over the past years By 2012 it was estimated that the total sales of

smartphones would be more than those of PCs in the global market In addition the

Gartnerrsquos statistics indicate that by 2014 the total revenues generated from all mobile

devices including smartphones e-books and related services applied on these

devices would be more than US$10 trillion Furthermore by 2015 the total number

of smartphone users would be more than 2 billion based upon the forecasted growth

rate of smartphones and the forecasted declining costs of all kinds of components

From the above it is very obvious that the traditional mobile phones have been

replaced by smartphones in a rapid way Although this trend just started several years

ago when Apple Inc launched its first iPhone in 2007 (wwwapplecom) the speed of

change has convinced the market that the future of mobile phones belongs to

smartphones Accordingly the competition of the industry has become more

complicated and intense because of the emergence of smartphones

23 Changes of leadership in the mobile phone market

There are numerous manufacturers of mobile phones around the world Before 2010

the leading manufacturer of mobile phone is the Nokia According to the Gartnerrsquos

statistics (2010) Nokiarsquos market shares of mobile phones was about 60 of total

global sales during its peak performance Nokia has long been considered as a leader

6 25

in the low-end markets where it has dominant positions and markets are mostly in the

developing countries Despite of its strong positions in those low-end markets

statistics show that Nokiarsquos market shares in those markets have decreased to less

than 30 by 2010

In fact Symbian is Nokiarsquos operating system that has long been used on many

smartphones According to Gartnerrsquos statistics (2010) over 60 of all kinds of

smartphones used the Symbian as their operating systems in the year of 2007 when

the Windows operating system only accounted for about 11 of the total market

shares and the iPhone operating system only about 6 of total amount At the time

Nokia was the true leader in the smartphone industry in which it alone had more than

50 of the market shares all around the world

However Nokia has been losing its leadership position in the smartphone industry

according to Gartnerrsquos statistics (2010) By 2010 there were only about 36 of all

kinds smartphones using its Symbian as the operating system while Googlersquos

Android accounted for about 26 of the total and iPhone accounted for about 16 of

total

When it comes to iPhone it is the first real smartphone launched in the market in

2007 which in fact has great impact on the whole mobile phone industry Applersquos

7 25

iPhone indeed recreates the mobile phone standards in the history It does not only

provide an easy and friendly user environment that allows all to browse internet on

the iPhone but also it has leverage all different systems in the Apple devices and

applications which has namely been called the ecosystem According to Salazar et al

(2010) the key reason why iPhone has great usersrsquo acception and adoption is because

of innovations on iPhone in many ways From a media and digital device provider to a

smartphone provider Apple has an unique ecosystem that includes several platforms

on which iPhone can leverage successfully This has in fact great barrier for other

competitors to follow and react to it (Cusmano 2010) Therefore the launch of

iPhone has indeed taken away many market shares of key players in the industry

including the old time leader ie Nokia

As for Google it has its own unique business model as well which is different from

others It did not enter the smartphone industry until it acquired the operating system

ie Android Since then the Google has successfully entered the smartphone industry

by allowing all software developers to play on the Android system Because the

Android is a open system it has then attracted not only software developers but also

weaker mobile phone manufacturers that have great intention to develop their own

competitive smartphone products which include Samsung With the quick expansion

of Android system the Google rapidly captures the market shares in the smartphone

industry which accounted for about 25 of the total in 2010 With its Android the

8 25

Google has won the confidence of most mobile phone manufacturers around the

world according to the statistics of the Canalys (2010)

3 The importance of marketing management

The marketing guru Philip Kotler has contributed to the development of marketing

management in our modern world According to his early publications the marketing

definition is the human activity directed at satisfying needs and wants through an

exchange process (Kotler 1980) Along with the development of the market and

management theories Kotler and other marketing professionals added more meanings

into the definition of the marketing Marketing is a social managerial process by

which individuals and groups obtain what they need and want through creating and

exchanging products and value with others (Kotler et al 1999)

In fact the American Marketing Association has its own definition of marketing

which considered marketing being ldquoan organisational function and a set of processes

for creating communicating and delivering value to customers and for managing

customer relationships in ways that benefit the organisation and its stakeholdersrdquo

There is no doubt that marketing has long been playing an essential role of developing

all kinds of businesses for all organisations Without proper marketing management

all kinds of businesses would have difficulty in developing effective marketing plans

9 25

implementing their marketing activities to capture more customers and market shares

and eventually helping to improve their business performance in our rapidly-changing

market environment around the world The global market has been changing so

quickly that leads to more uncertainties than ever before In light of this it is very

critical for all kinds of businesses to have effective marketing management in place to

help organisations to respond and react to the ever-changing environment

There are two kinds of environment for all kinds of businesses ie external and

internal environment Both of them can have great impact on all business

organizations the market places where they run businesses and the co-relationship

among all factors (Jobber 2006) In light of this it is very important Thus

understanding environment and using the environment scanning are important

activities for all marketers and organizations Denis A at al (2001) argued that the

marketing environment factors are often referred to as Social Technological

Economic and Political varibles (PEST) In reality the PEST framework for

environmental auditing has been widely used in business work

After analysis the external environment marketers can make decisions and take

relevant approaches to allow organizations to identify and capitalize opportunities

(Kotler et al 1999) Based upon this marketers can then conduct necessary research to

indentify the market segmentations ldquoMarketing research is an essential tool for the

10 25

marketing manager in helping to define and locate market segments and understand

their needs and wantsrdquo (Jobber 2006)

Fill (2009) argues that ldquosegmentation is necessary because a single product is unlikely

to meet the needs of all customers in a mass marketrdquo Thus with proper segmentation

organizations can effectively satisfy targeted customersrsquo needs

After the segmentation process marketers can move forward to utilize the techniques

of marketing mix to carry out the whole marketing activities ldquoFor most physical

goods the marketing mix consists of four elements product price place and

promotion For services the marketing mix can be extended to seven elements with

the addition of people processes and physical evidencerdquo (David Jobber 2006)

Whether marketers can effectively communicate messages to targeted customers or

audience is closely related to the promotion ie the marketing communications

which describe the most important areas of marketing (Pickton amp Hartley 1998) And

the marketing communication mix consists of five communication channels

advertising public relations personal selling direct marketing and sales

promotionFill C (2009)

11 25

With the systematic planning and effective implementation of relevant marketing

techniques marketers can ensure the products or service being successful in the

market

4 Marketing of Samsung

Samsung is one of the largest technology companies in the world founded in 1938 It

has almost 16000 employees in the world and its revenue for exceeds $117 billion in

2009 In the world most countries have Samsung Company Its headquarters are

located in Seoul South Korea Samsung has a big range of home appliances and

consumer electronics The company famous products in the world are TV ldquoGalaxyrdquo

tablet and mobile phones Now Samsung is the biggest mobile phones company in

the world

41 Marketing mix at Samsung

For the definition of marketing communications so far there is still no strict standard

According to Fill (2009) he declares that marketing communications is ldquoa manageme

nt process in which an organization engages with its various audiencesrdquo This include

s various kinds of activities From the view of Egan (2002) he thinks that marketing c

ommunications are ldquothe methods by which the suppliers who provide the goods value

s andor ideas services shows themselves to their target audiences aiming to stimulate

12 25

the dialogue successfully and form a better commercial or other relationshipsrdquo In oth

er words marketing communications are those things which can be transmitted from t

he company to the target audience Fill (2009) once says that there are four major func

tions ndash to differentiate to reinforce to inform and to persuade Selecting the first lette

rs of these four functions we can get DRIP Marketing communications are part of the

marketing mix which consists of Price Place Product and Promotion or the four Ps

According to Fill (2009) they consist of tools media and messages

42 Samsungrsquos message

Message can be defined as a set of symbols words and visual material (pictures

photos) that is sent to the target audience The company (in this case Samsung) could

be a sender as well as its brand name or someone who is advertising their products

(football players celebrities etc) (Kotler 2005) Kotler also argues that a message is

said to be good if it is easy to be understood by the target audience

Samsungrsquos brand main point is ldquoturn on tomorrowrdquo but sometime the company

develop is not follow its brand It stresses on the innovativeness of the companyrsquos

products The old message was ldquoeveryonersquos invitedrdquo but now the company does not

use the old message anymore The company has divided its messages to the target

audience in terms of the product range The main message that is attached to

13 25

Samsungrsquos new Galaxy tablets is ldquoLife without limitsrdquo All other messages regarding

this product range are related to the freedom that they provide In the USA the

message is ldquofeel free to Tabrdquo On the Samsungrsquos YouTube page one can see the same

messages

Samsungrsquos messages are emotional rather than rational That because the nature of the

Samsungrsquos products But there is a little of rational messages like ldquofeaturing a 7rdquo

screenrdquo which are necessary to show the product what the different between other

competitors I think that this type of messages is appropriate to be used If just use

emotional messages the customers may not know what exactly makes Samsungrsquos

products different than the others

43 Advertising at Samsung

Advertising is defined as ldquoany paid form of non-personal communication about an

organization product service or idea by an identified sponsorrdquo Belch amp Belch

(2002) When using advertising the message is normally transmitted via mass media ndash

TV radio newspapers etc A strong feature of advertising is that is can reach many

people sometimes even millions at the same time This is why it is used by large

companies (like Samsung) which aim to reach the mass market The company has

good control over the message and its design but there are almost no opportunities for

14 25

a feedback from the target audience Blythe (2006) argues that advertising has lower

credibility compared to the other marketing communication tools Therefore there is

no warranty that advertising will make the customers to buy the particular product or

service But it is an excellent tool for informing the target audience It is the most

expensive tool but has lowest price per customer reached Companies still spend

millions on advertising each year

Samsungrsquos advertisements are mainly emotional stressing the freedom that the

products provide but have a rational element stressing on their functionality Same

product carries the same type of information but stresses on the innovative technical

features (Google Maps with voice search etc) which explain why it is alleged to be

ldquothe best Android based smartphone in the worldrdquo

44 Sales promotion at Samsung

Belch amp Belch (2002) define sales promotion as ldquothose marketing activities that

provide extra value or incentives to the sales force the distributors or the ultimate

consumer and can stimulate immediate salesrdquo They key word here is ldquoimmediaterdquo

customers are inclined to act here and now Sales promotionsrsquo aim is to achieve short-

term increase in sales Baker (2007) argues that their credibility is at medium level

and the message is well controlled It is important for the sales promotion to continue

15 25

for a short period of time If it continues too long the customers may assume the

discounted price as a normal one and to postpone their buying decision until next

promotion

You can find all Samsung promotions on their website The customer can change the

country of residence to see the local promotions But the sites are different Due to

nature of the products the vast majority of sales promotions are of a lottery type where

there a big prize is won In my opinion the company uses this way not because to

increase its short-term sales but to increase the brand awareness and increase new

subscribers that who e-mail addresses will be used for direct marketing purposes

45 Social media at Samsung

Social media is a new phenomenon it develops speed very fast and more and more

important for the companyrsquos marketing communication The most powerful feature of

social networking is that it allows the customers and the company to into a dialogue

Word-of-Mouth that is spread around the social networks is another advantage

Samsung uses social media for both engaging with its customers and advertising It

has several Facebook pages divided by country and by product Galaxy product range

has fan pages but other products do not Similarly Samsung has fan pages in many

countries In my opinion Samsung still have many things can do by social media

16 25

5 Conclusion

Over the years all kinds of organisations have been undertaking varies of marketing

activities in order to increase their competitiveness in the market which allows them

to sustain their market shares and achieve organisational goals in the business world

Along with the development of mobile phone internet and personal computing

devices a new internet world emerges ie mobile internet In light of this there is a

new name for mobile phones that can effectively access to the internet ie

Smartphone

About the definition of IMC still no common agreement exist (Kim et al 2004) Som

e scholars think that IMC is a new concept while for others they support that the idea

of IMC is not new but just a more efficient way to manage the marketing communicat

ion tools (Kitchen amp Schultz 2009) In order to convey the messages clearly it is nec

essary for the customers to see and hear the same message This could be achieved onl

y if the different marketing communication tools support each-other

As we all know the company of Samsung owns more than $117 billion revenue in 20

11 with global technology (wwwsamsungcom) so much evidence about the integrati

on of the different communication tools could be found First the logo and the key me

ssages are globally standardized The Galaxy S tablet message is similar ndash ldquofreedomrdquo

17 25

ldquolive without limitsrdquo Other similar messages related to the feeling of being free are al

so attached to Galaxy S tablet worldwide

There is also a powerful integration between the different marketing communication t

ools and media For example integration between traditional and online media In ma

ny countries all sales promotions are integrated with direct marketing ndash customers are

required to provide their basic details and e-mails Social media is also very well integ

rated with sales promotions Print adverts are also integrated with sales promotion and

direct to the Samsung website

In an company such as Samsung the main thing creating difficulties is its size It is dif

ficult to co-ordinate the marketing activities in a company with nearly 160 000 emplo

yees Samsung has several official websites ndash the main site (Samsungcom) a site dev

oted only to mobile phone users in specific countries This could lead to confusion for

the customer and currently Samsung is merging these local sites with its global websit

e

18 25

References

Wall Street Journal (2009) Motorola Executive Helped spur Cellphone Revolution

Wall Street Journal 20ndash21 June 2009 p A10

Funk J 2001 The mobile Internet How Japan dialed up and the West disconnected

Pembroke Bermuda ISI Publications

19 25

Apple 2010 ldquoiPhone Developer Program License Agreementrdquo

httpwwwefforgfiles20100302_iphone_dev_agrpdf

Cusumano Michael 2010 ldquoTechnology Strategy and Management The Evolution of

Platform Thinkingrdquo Communications of the ACM 53 (1) 32-34

Martinez Salazar and Marco Martinez 2010 ldquoThe Mobile Phone User Identifying

Top Mobile Applicationsrdquo (April 1 2010) Available at SSRN

httpssrncomabstract=1691210

P Kotler (1980) Marketing Management 3th Edition Published by Prentice

Kotler P Armstrong G Saunders J And Wong V (1999) Principles of Marketing

2nd European edn Pretice- Hall

Denis Adcock Al Halborg and Caroline Ross(2001) Marketing Principles and

Practice 4th edn published by FT Prentice Hall

C Fill (2009) Marketing communications 5th edition Pearson Education

P Kotler (2009) Marketing Management European edition FT Prentice Hall

20 25

Ries A and trout J (1981) Positioning the Battle for Your Mind McGraw- Hall

David Jobber (2006) Principles and Practice of Marketing 6th edn published by

McGraw-Hill

Anderson PH 2001 Relationship development and marketing communication An

integrative model The Journal of Business and Industrial

Pickton D amp Hartley B (1998) Measuring integration an assessment of the quality

of integrated marketing communications International Journal of Advertising

D Schultz amp C Patti (2009) The evolution of IMC IMC in a customer-driven

marketplace Journal of Marketing Communications Vol 15 Nos 2ndash3 AprilndashJuly

2009 pp 75ndash84

L Percy (2008) Strategic integrated marketing communication theory and practice

Butterworth Heinemann

F Brassington amp S Pettitt (2007) Essentials of Marketing second edn FT Prentice

Hall

Spreng RA and Mackoy RD (1996) An empirical examination of a model of

21 25

perceived service quality and satisfaction Journal of Retailing Vol 72 pp 201-14

Shemwell DJ Yavas U and Bilgin Z 11130881998) ``Customer-service provider

relationships an empirical test of a model of service quality satisfaction and

relationship oriented outcome International Journal of Service Industry

Management Vol 9 pp 155-68

Newman K and Pyne T (1996) Quality matters junior doctorsrsquo perceptions

Journal of Management in Medicine Vol 10 No 4 pp 12-23

Morrison J(2006) The International Business Environment 2nd edition Published

by Palgrave MacMillan

Baker J (2007) Marketing strategy and management Publisher Palgrave Macmillan

Blythe J (2006) Marketing Published by SAGE

Egan J (2007) Marketing communications Published by Thomson Learning

Finne amp Gronroos (2009) ldquoRethinking marketing communication From integrated

marketing communication to relationship communicationrdquo Journal of Marketing

Communications Vol 15 Nos 2ndash3 AprilndashJuly 2009 179ndash195

22 25

Kotler P et al (2005) Principles of marketing 4th edition Publisher Pearson

Education

London Butterworth-Heinemann

Kotler P (2003) Marketing management 11th edition Publisher Pearson Education

Kim I Han D amp Schultz D (2004) ldquoUnderstanding the Diffusion of Integrated

Marketing Communicationsrdquo Journal of Advertising Research March 2004 pp 31-45

Kitchen P amp Schultz D (2009) ldquoIMC New horizonfalse dawn for a marketplace in

turmoilrdquo Journal of Marketing Communications Vol 15 Nos 2ndash3 AprilndashJuly

2009 197ndash204

Pickton D amp Broderick A (2005) Integrated Marketing Communications 2nd edition

Publisher Pearson Education

Russell E The fundamentals of marketing Publisher AVA Academia

httpnewscnetcom

23 25

httpwwwecirclecom

httpwwwyoutubecom

httpchroniclingamericalocgovlccnsn850424621906-05-21ed-1seq-7

httpwwwmsnbcmsncomid7432915nstechnology_and_science-wirelesstfirst-

cell-phone-true-brickT2o-y3mP5JE

httpwwwumtsworldcomumtshistoryhtm

Mobile market httpwwwgartnercomitpagejspid=1455314

httpwwwsamsungcom

24 25

  1. Widget PGBM 15 Marketing Management
Page 8: PGBM 15 Marketing Management

in the low-end markets where it has dominant positions and markets are mostly in the

developing countries Despite of its strong positions in those low-end markets

statistics show that Nokiarsquos market shares in those markets have decreased to less

than 30 by 2010

In fact Symbian is Nokiarsquos operating system that has long been used on many

smartphones According to Gartnerrsquos statistics (2010) over 60 of all kinds of

smartphones used the Symbian as their operating systems in the year of 2007 when

the Windows operating system only accounted for about 11 of the total market

shares and the iPhone operating system only about 6 of total amount At the time

Nokia was the true leader in the smartphone industry in which it alone had more than

50 of the market shares all around the world

However Nokia has been losing its leadership position in the smartphone industry

according to Gartnerrsquos statistics (2010) By 2010 there were only about 36 of all

kinds smartphones using its Symbian as the operating system while Googlersquos

Android accounted for about 26 of the total and iPhone accounted for about 16 of

total

When it comes to iPhone it is the first real smartphone launched in the market in

2007 which in fact has great impact on the whole mobile phone industry Applersquos

7 25

iPhone indeed recreates the mobile phone standards in the history It does not only

provide an easy and friendly user environment that allows all to browse internet on

the iPhone but also it has leverage all different systems in the Apple devices and

applications which has namely been called the ecosystem According to Salazar et al

(2010) the key reason why iPhone has great usersrsquo acception and adoption is because

of innovations on iPhone in many ways From a media and digital device provider to a

smartphone provider Apple has an unique ecosystem that includes several platforms

on which iPhone can leverage successfully This has in fact great barrier for other

competitors to follow and react to it (Cusmano 2010) Therefore the launch of

iPhone has indeed taken away many market shares of key players in the industry

including the old time leader ie Nokia

As for Google it has its own unique business model as well which is different from

others It did not enter the smartphone industry until it acquired the operating system

ie Android Since then the Google has successfully entered the smartphone industry

by allowing all software developers to play on the Android system Because the

Android is a open system it has then attracted not only software developers but also

weaker mobile phone manufacturers that have great intention to develop their own

competitive smartphone products which include Samsung With the quick expansion

of Android system the Google rapidly captures the market shares in the smartphone

industry which accounted for about 25 of the total in 2010 With its Android the

8 25

Google has won the confidence of most mobile phone manufacturers around the

world according to the statistics of the Canalys (2010)

3 The importance of marketing management

The marketing guru Philip Kotler has contributed to the development of marketing

management in our modern world According to his early publications the marketing

definition is the human activity directed at satisfying needs and wants through an

exchange process (Kotler 1980) Along with the development of the market and

management theories Kotler and other marketing professionals added more meanings

into the definition of the marketing Marketing is a social managerial process by

which individuals and groups obtain what they need and want through creating and

exchanging products and value with others (Kotler et al 1999)

In fact the American Marketing Association has its own definition of marketing

which considered marketing being ldquoan organisational function and a set of processes

for creating communicating and delivering value to customers and for managing

customer relationships in ways that benefit the organisation and its stakeholdersrdquo

There is no doubt that marketing has long been playing an essential role of developing

all kinds of businesses for all organisations Without proper marketing management

all kinds of businesses would have difficulty in developing effective marketing plans

9 25

implementing their marketing activities to capture more customers and market shares

and eventually helping to improve their business performance in our rapidly-changing

market environment around the world The global market has been changing so

quickly that leads to more uncertainties than ever before In light of this it is very

critical for all kinds of businesses to have effective marketing management in place to

help organisations to respond and react to the ever-changing environment

There are two kinds of environment for all kinds of businesses ie external and

internal environment Both of them can have great impact on all business

organizations the market places where they run businesses and the co-relationship

among all factors (Jobber 2006) In light of this it is very important Thus

understanding environment and using the environment scanning are important

activities for all marketers and organizations Denis A at al (2001) argued that the

marketing environment factors are often referred to as Social Technological

Economic and Political varibles (PEST) In reality the PEST framework for

environmental auditing has been widely used in business work

After analysis the external environment marketers can make decisions and take

relevant approaches to allow organizations to identify and capitalize opportunities

(Kotler et al 1999) Based upon this marketers can then conduct necessary research to

indentify the market segmentations ldquoMarketing research is an essential tool for the

10 25

marketing manager in helping to define and locate market segments and understand

their needs and wantsrdquo (Jobber 2006)

Fill (2009) argues that ldquosegmentation is necessary because a single product is unlikely

to meet the needs of all customers in a mass marketrdquo Thus with proper segmentation

organizations can effectively satisfy targeted customersrsquo needs

After the segmentation process marketers can move forward to utilize the techniques

of marketing mix to carry out the whole marketing activities ldquoFor most physical

goods the marketing mix consists of four elements product price place and

promotion For services the marketing mix can be extended to seven elements with

the addition of people processes and physical evidencerdquo (David Jobber 2006)

Whether marketers can effectively communicate messages to targeted customers or

audience is closely related to the promotion ie the marketing communications

which describe the most important areas of marketing (Pickton amp Hartley 1998) And

the marketing communication mix consists of five communication channels

advertising public relations personal selling direct marketing and sales

promotionFill C (2009)

11 25

With the systematic planning and effective implementation of relevant marketing

techniques marketers can ensure the products or service being successful in the

market

4 Marketing of Samsung

Samsung is one of the largest technology companies in the world founded in 1938 It

has almost 16000 employees in the world and its revenue for exceeds $117 billion in

2009 In the world most countries have Samsung Company Its headquarters are

located in Seoul South Korea Samsung has a big range of home appliances and

consumer electronics The company famous products in the world are TV ldquoGalaxyrdquo

tablet and mobile phones Now Samsung is the biggest mobile phones company in

the world

41 Marketing mix at Samsung

For the definition of marketing communications so far there is still no strict standard

According to Fill (2009) he declares that marketing communications is ldquoa manageme

nt process in which an organization engages with its various audiencesrdquo This include

s various kinds of activities From the view of Egan (2002) he thinks that marketing c

ommunications are ldquothe methods by which the suppliers who provide the goods value

s andor ideas services shows themselves to their target audiences aiming to stimulate

12 25

the dialogue successfully and form a better commercial or other relationshipsrdquo In oth

er words marketing communications are those things which can be transmitted from t

he company to the target audience Fill (2009) once says that there are four major func

tions ndash to differentiate to reinforce to inform and to persuade Selecting the first lette

rs of these four functions we can get DRIP Marketing communications are part of the

marketing mix which consists of Price Place Product and Promotion or the four Ps

According to Fill (2009) they consist of tools media and messages

42 Samsungrsquos message

Message can be defined as a set of symbols words and visual material (pictures

photos) that is sent to the target audience The company (in this case Samsung) could

be a sender as well as its brand name or someone who is advertising their products

(football players celebrities etc) (Kotler 2005) Kotler also argues that a message is

said to be good if it is easy to be understood by the target audience

Samsungrsquos brand main point is ldquoturn on tomorrowrdquo but sometime the company

develop is not follow its brand It stresses on the innovativeness of the companyrsquos

products The old message was ldquoeveryonersquos invitedrdquo but now the company does not

use the old message anymore The company has divided its messages to the target

audience in terms of the product range The main message that is attached to

13 25

Samsungrsquos new Galaxy tablets is ldquoLife without limitsrdquo All other messages regarding

this product range are related to the freedom that they provide In the USA the

message is ldquofeel free to Tabrdquo On the Samsungrsquos YouTube page one can see the same

messages

Samsungrsquos messages are emotional rather than rational That because the nature of the

Samsungrsquos products But there is a little of rational messages like ldquofeaturing a 7rdquo

screenrdquo which are necessary to show the product what the different between other

competitors I think that this type of messages is appropriate to be used If just use

emotional messages the customers may not know what exactly makes Samsungrsquos

products different than the others

43 Advertising at Samsung

Advertising is defined as ldquoany paid form of non-personal communication about an

organization product service or idea by an identified sponsorrdquo Belch amp Belch

(2002) When using advertising the message is normally transmitted via mass media ndash

TV radio newspapers etc A strong feature of advertising is that is can reach many

people sometimes even millions at the same time This is why it is used by large

companies (like Samsung) which aim to reach the mass market The company has

good control over the message and its design but there are almost no opportunities for

14 25

a feedback from the target audience Blythe (2006) argues that advertising has lower

credibility compared to the other marketing communication tools Therefore there is

no warranty that advertising will make the customers to buy the particular product or

service But it is an excellent tool for informing the target audience It is the most

expensive tool but has lowest price per customer reached Companies still spend

millions on advertising each year

Samsungrsquos advertisements are mainly emotional stressing the freedom that the

products provide but have a rational element stressing on their functionality Same

product carries the same type of information but stresses on the innovative technical

features (Google Maps with voice search etc) which explain why it is alleged to be

ldquothe best Android based smartphone in the worldrdquo

44 Sales promotion at Samsung

Belch amp Belch (2002) define sales promotion as ldquothose marketing activities that

provide extra value or incentives to the sales force the distributors or the ultimate

consumer and can stimulate immediate salesrdquo They key word here is ldquoimmediaterdquo

customers are inclined to act here and now Sales promotionsrsquo aim is to achieve short-

term increase in sales Baker (2007) argues that their credibility is at medium level

and the message is well controlled It is important for the sales promotion to continue

15 25

for a short period of time If it continues too long the customers may assume the

discounted price as a normal one and to postpone their buying decision until next

promotion

You can find all Samsung promotions on their website The customer can change the

country of residence to see the local promotions But the sites are different Due to

nature of the products the vast majority of sales promotions are of a lottery type where

there a big prize is won In my opinion the company uses this way not because to

increase its short-term sales but to increase the brand awareness and increase new

subscribers that who e-mail addresses will be used for direct marketing purposes

45 Social media at Samsung

Social media is a new phenomenon it develops speed very fast and more and more

important for the companyrsquos marketing communication The most powerful feature of

social networking is that it allows the customers and the company to into a dialogue

Word-of-Mouth that is spread around the social networks is another advantage

Samsung uses social media for both engaging with its customers and advertising It

has several Facebook pages divided by country and by product Galaxy product range

has fan pages but other products do not Similarly Samsung has fan pages in many

countries In my opinion Samsung still have many things can do by social media

16 25

5 Conclusion

Over the years all kinds of organisations have been undertaking varies of marketing

activities in order to increase their competitiveness in the market which allows them

to sustain their market shares and achieve organisational goals in the business world

Along with the development of mobile phone internet and personal computing

devices a new internet world emerges ie mobile internet In light of this there is a

new name for mobile phones that can effectively access to the internet ie

Smartphone

About the definition of IMC still no common agreement exist (Kim et al 2004) Som

e scholars think that IMC is a new concept while for others they support that the idea

of IMC is not new but just a more efficient way to manage the marketing communicat

ion tools (Kitchen amp Schultz 2009) In order to convey the messages clearly it is nec

essary for the customers to see and hear the same message This could be achieved onl

y if the different marketing communication tools support each-other

As we all know the company of Samsung owns more than $117 billion revenue in 20

11 with global technology (wwwsamsungcom) so much evidence about the integrati

on of the different communication tools could be found First the logo and the key me

ssages are globally standardized The Galaxy S tablet message is similar ndash ldquofreedomrdquo

17 25

ldquolive without limitsrdquo Other similar messages related to the feeling of being free are al

so attached to Galaxy S tablet worldwide

There is also a powerful integration between the different marketing communication t

ools and media For example integration between traditional and online media In ma

ny countries all sales promotions are integrated with direct marketing ndash customers are

required to provide their basic details and e-mails Social media is also very well integ

rated with sales promotions Print adverts are also integrated with sales promotion and

direct to the Samsung website

In an company such as Samsung the main thing creating difficulties is its size It is dif

ficult to co-ordinate the marketing activities in a company with nearly 160 000 emplo

yees Samsung has several official websites ndash the main site (Samsungcom) a site dev

oted only to mobile phone users in specific countries This could lead to confusion for

the customer and currently Samsung is merging these local sites with its global websit

e

18 25

References

Wall Street Journal (2009) Motorola Executive Helped spur Cellphone Revolution

Wall Street Journal 20ndash21 June 2009 p A10

Funk J 2001 The mobile Internet How Japan dialed up and the West disconnected

Pembroke Bermuda ISI Publications

19 25

Apple 2010 ldquoiPhone Developer Program License Agreementrdquo

httpwwwefforgfiles20100302_iphone_dev_agrpdf

Cusumano Michael 2010 ldquoTechnology Strategy and Management The Evolution of

Platform Thinkingrdquo Communications of the ACM 53 (1) 32-34

Martinez Salazar and Marco Martinez 2010 ldquoThe Mobile Phone User Identifying

Top Mobile Applicationsrdquo (April 1 2010) Available at SSRN

httpssrncomabstract=1691210

P Kotler (1980) Marketing Management 3th Edition Published by Prentice

Kotler P Armstrong G Saunders J And Wong V (1999) Principles of Marketing

2nd European edn Pretice- Hall

Denis Adcock Al Halborg and Caroline Ross(2001) Marketing Principles and

Practice 4th edn published by FT Prentice Hall

C Fill (2009) Marketing communications 5th edition Pearson Education

P Kotler (2009) Marketing Management European edition FT Prentice Hall

20 25

Ries A and trout J (1981) Positioning the Battle for Your Mind McGraw- Hall

David Jobber (2006) Principles and Practice of Marketing 6th edn published by

McGraw-Hill

Anderson PH 2001 Relationship development and marketing communication An

integrative model The Journal of Business and Industrial

Pickton D amp Hartley B (1998) Measuring integration an assessment of the quality

of integrated marketing communications International Journal of Advertising

D Schultz amp C Patti (2009) The evolution of IMC IMC in a customer-driven

marketplace Journal of Marketing Communications Vol 15 Nos 2ndash3 AprilndashJuly

2009 pp 75ndash84

L Percy (2008) Strategic integrated marketing communication theory and practice

Butterworth Heinemann

F Brassington amp S Pettitt (2007) Essentials of Marketing second edn FT Prentice

Hall

Spreng RA and Mackoy RD (1996) An empirical examination of a model of

21 25

perceived service quality and satisfaction Journal of Retailing Vol 72 pp 201-14

Shemwell DJ Yavas U and Bilgin Z 11130881998) ``Customer-service provider

relationships an empirical test of a model of service quality satisfaction and

relationship oriented outcome International Journal of Service Industry

Management Vol 9 pp 155-68

Newman K and Pyne T (1996) Quality matters junior doctorsrsquo perceptions

Journal of Management in Medicine Vol 10 No 4 pp 12-23

Morrison J(2006) The International Business Environment 2nd edition Published

by Palgrave MacMillan

Baker J (2007) Marketing strategy and management Publisher Palgrave Macmillan

Blythe J (2006) Marketing Published by SAGE

Egan J (2007) Marketing communications Published by Thomson Learning

Finne amp Gronroos (2009) ldquoRethinking marketing communication From integrated

marketing communication to relationship communicationrdquo Journal of Marketing

Communications Vol 15 Nos 2ndash3 AprilndashJuly 2009 179ndash195

22 25

Kotler P et al (2005) Principles of marketing 4th edition Publisher Pearson

Education

London Butterworth-Heinemann

Kotler P (2003) Marketing management 11th edition Publisher Pearson Education

Kim I Han D amp Schultz D (2004) ldquoUnderstanding the Diffusion of Integrated

Marketing Communicationsrdquo Journal of Advertising Research March 2004 pp 31-45

Kitchen P amp Schultz D (2009) ldquoIMC New horizonfalse dawn for a marketplace in

turmoilrdquo Journal of Marketing Communications Vol 15 Nos 2ndash3 AprilndashJuly

2009 197ndash204

Pickton D amp Broderick A (2005) Integrated Marketing Communications 2nd edition

Publisher Pearson Education

Russell E The fundamentals of marketing Publisher AVA Academia

httpnewscnetcom

23 25

httpwwwecirclecom

httpwwwyoutubecom

httpchroniclingamericalocgovlccnsn850424621906-05-21ed-1seq-7

httpwwwmsnbcmsncomid7432915nstechnology_and_science-wirelesstfirst-

cell-phone-true-brickT2o-y3mP5JE

httpwwwumtsworldcomumtshistoryhtm

Mobile market httpwwwgartnercomitpagejspid=1455314

httpwwwsamsungcom

24 25

  1. Widget PGBM 15 Marketing Management
Page 9: PGBM 15 Marketing Management

iPhone indeed recreates the mobile phone standards in the history It does not only

provide an easy and friendly user environment that allows all to browse internet on

the iPhone but also it has leverage all different systems in the Apple devices and

applications which has namely been called the ecosystem According to Salazar et al

(2010) the key reason why iPhone has great usersrsquo acception and adoption is because

of innovations on iPhone in many ways From a media and digital device provider to a

smartphone provider Apple has an unique ecosystem that includes several platforms

on which iPhone can leverage successfully This has in fact great barrier for other

competitors to follow and react to it (Cusmano 2010) Therefore the launch of

iPhone has indeed taken away many market shares of key players in the industry

including the old time leader ie Nokia

As for Google it has its own unique business model as well which is different from

others It did not enter the smartphone industry until it acquired the operating system

ie Android Since then the Google has successfully entered the smartphone industry

by allowing all software developers to play on the Android system Because the

Android is a open system it has then attracted not only software developers but also

weaker mobile phone manufacturers that have great intention to develop their own

competitive smartphone products which include Samsung With the quick expansion

of Android system the Google rapidly captures the market shares in the smartphone

industry which accounted for about 25 of the total in 2010 With its Android the

8 25

Google has won the confidence of most mobile phone manufacturers around the

world according to the statistics of the Canalys (2010)

3 The importance of marketing management

The marketing guru Philip Kotler has contributed to the development of marketing

management in our modern world According to his early publications the marketing

definition is the human activity directed at satisfying needs and wants through an

exchange process (Kotler 1980) Along with the development of the market and

management theories Kotler and other marketing professionals added more meanings

into the definition of the marketing Marketing is a social managerial process by

which individuals and groups obtain what they need and want through creating and

exchanging products and value with others (Kotler et al 1999)

In fact the American Marketing Association has its own definition of marketing

which considered marketing being ldquoan organisational function and a set of processes

for creating communicating and delivering value to customers and for managing

customer relationships in ways that benefit the organisation and its stakeholdersrdquo

There is no doubt that marketing has long been playing an essential role of developing

all kinds of businesses for all organisations Without proper marketing management

all kinds of businesses would have difficulty in developing effective marketing plans

9 25

implementing their marketing activities to capture more customers and market shares

and eventually helping to improve their business performance in our rapidly-changing

market environment around the world The global market has been changing so

quickly that leads to more uncertainties than ever before In light of this it is very

critical for all kinds of businesses to have effective marketing management in place to

help organisations to respond and react to the ever-changing environment

There are two kinds of environment for all kinds of businesses ie external and

internal environment Both of them can have great impact on all business

organizations the market places where they run businesses and the co-relationship

among all factors (Jobber 2006) In light of this it is very important Thus

understanding environment and using the environment scanning are important

activities for all marketers and organizations Denis A at al (2001) argued that the

marketing environment factors are often referred to as Social Technological

Economic and Political varibles (PEST) In reality the PEST framework for

environmental auditing has been widely used in business work

After analysis the external environment marketers can make decisions and take

relevant approaches to allow organizations to identify and capitalize opportunities

(Kotler et al 1999) Based upon this marketers can then conduct necessary research to

indentify the market segmentations ldquoMarketing research is an essential tool for the

10 25

marketing manager in helping to define and locate market segments and understand

their needs and wantsrdquo (Jobber 2006)

Fill (2009) argues that ldquosegmentation is necessary because a single product is unlikely

to meet the needs of all customers in a mass marketrdquo Thus with proper segmentation

organizations can effectively satisfy targeted customersrsquo needs

After the segmentation process marketers can move forward to utilize the techniques

of marketing mix to carry out the whole marketing activities ldquoFor most physical

goods the marketing mix consists of four elements product price place and

promotion For services the marketing mix can be extended to seven elements with

the addition of people processes and physical evidencerdquo (David Jobber 2006)

Whether marketers can effectively communicate messages to targeted customers or

audience is closely related to the promotion ie the marketing communications

which describe the most important areas of marketing (Pickton amp Hartley 1998) And

the marketing communication mix consists of five communication channels

advertising public relations personal selling direct marketing and sales

promotionFill C (2009)

11 25

With the systematic planning and effective implementation of relevant marketing

techniques marketers can ensure the products or service being successful in the

market

4 Marketing of Samsung

Samsung is one of the largest technology companies in the world founded in 1938 It

has almost 16000 employees in the world and its revenue for exceeds $117 billion in

2009 In the world most countries have Samsung Company Its headquarters are

located in Seoul South Korea Samsung has a big range of home appliances and

consumer electronics The company famous products in the world are TV ldquoGalaxyrdquo

tablet and mobile phones Now Samsung is the biggest mobile phones company in

the world

41 Marketing mix at Samsung

For the definition of marketing communications so far there is still no strict standard

According to Fill (2009) he declares that marketing communications is ldquoa manageme

nt process in which an organization engages with its various audiencesrdquo This include

s various kinds of activities From the view of Egan (2002) he thinks that marketing c

ommunications are ldquothe methods by which the suppliers who provide the goods value

s andor ideas services shows themselves to their target audiences aiming to stimulate

12 25

the dialogue successfully and form a better commercial or other relationshipsrdquo In oth

er words marketing communications are those things which can be transmitted from t

he company to the target audience Fill (2009) once says that there are four major func

tions ndash to differentiate to reinforce to inform and to persuade Selecting the first lette

rs of these four functions we can get DRIP Marketing communications are part of the

marketing mix which consists of Price Place Product and Promotion or the four Ps

According to Fill (2009) they consist of tools media and messages

42 Samsungrsquos message

Message can be defined as a set of symbols words and visual material (pictures

photos) that is sent to the target audience The company (in this case Samsung) could

be a sender as well as its brand name or someone who is advertising their products

(football players celebrities etc) (Kotler 2005) Kotler also argues that a message is

said to be good if it is easy to be understood by the target audience

Samsungrsquos brand main point is ldquoturn on tomorrowrdquo but sometime the company

develop is not follow its brand It stresses on the innovativeness of the companyrsquos

products The old message was ldquoeveryonersquos invitedrdquo but now the company does not

use the old message anymore The company has divided its messages to the target

audience in terms of the product range The main message that is attached to

13 25

Samsungrsquos new Galaxy tablets is ldquoLife without limitsrdquo All other messages regarding

this product range are related to the freedom that they provide In the USA the

message is ldquofeel free to Tabrdquo On the Samsungrsquos YouTube page one can see the same

messages

Samsungrsquos messages are emotional rather than rational That because the nature of the

Samsungrsquos products But there is a little of rational messages like ldquofeaturing a 7rdquo

screenrdquo which are necessary to show the product what the different between other

competitors I think that this type of messages is appropriate to be used If just use

emotional messages the customers may not know what exactly makes Samsungrsquos

products different than the others

43 Advertising at Samsung

Advertising is defined as ldquoany paid form of non-personal communication about an

organization product service or idea by an identified sponsorrdquo Belch amp Belch

(2002) When using advertising the message is normally transmitted via mass media ndash

TV radio newspapers etc A strong feature of advertising is that is can reach many

people sometimes even millions at the same time This is why it is used by large

companies (like Samsung) which aim to reach the mass market The company has

good control over the message and its design but there are almost no opportunities for

14 25

a feedback from the target audience Blythe (2006) argues that advertising has lower

credibility compared to the other marketing communication tools Therefore there is

no warranty that advertising will make the customers to buy the particular product or

service But it is an excellent tool for informing the target audience It is the most

expensive tool but has lowest price per customer reached Companies still spend

millions on advertising each year

Samsungrsquos advertisements are mainly emotional stressing the freedom that the

products provide but have a rational element stressing on their functionality Same

product carries the same type of information but stresses on the innovative technical

features (Google Maps with voice search etc) which explain why it is alleged to be

ldquothe best Android based smartphone in the worldrdquo

44 Sales promotion at Samsung

Belch amp Belch (2002) define sales promotion as ldquothose marketing activities that

provide extra value or incentives to the sales force the distributors or the ultimate

consumer and can stimulate immediate salesrdquo They key word here is ldquoimmediaterdquo

customers are inclined to act here and now Sales promotionsrsquo aim is to achieve short-

term increase in sales Baker (2007) argues that their credibility is at medium level

and the message is well controlled It is important for the sales promotion to continue

15 25

for a short period of time If it continues too long the customers may assume the

discounted price as a normal one and to postpone their buying decision until next

promotion

You can find all Samsung promotions on their website The customer can change the

country of residence to see the local promotions But the sites are different Due to

nature of the products the vast majority of sales promotions are of a lottery type where

there a big prize is won In my opinion the company uses this way not because to

increase its short-term sales but to increase the brand awareness and increase new

subscribers that who e-mail addresses will be used for direct marketing purposes

45 Social media at Samsung

Social media is a new phenomenon it develops speed very fast and more and more

important for the companyrsquos marketing communication The most powerful feature of

social networking is that it allows the customers and the company to into a dialogue

Word-of-Mouth that is spread around the social networks is another advantage

Samsung uses social media for both engaging with its customers and advertising It

has several Facebook pages divided by country and by product Galaxy product range

has fan pages but other products do not Similarly Samsung has fan pages in many

countries In my opinion Samsung still have many things can do by social media

16 25

5 Conclusion

Over the years all kinds of organisations have been undertaking varies of marketing

activities in order to increase their competitiveness in the market which allows them

to sustain their market shares and achieve organisational goals in the business world

Along with the development of mobile phone internet and personal computing

devices a new internet world emerges ie mobile internet In light of this there is a

new name for mobile phones that can effectively access to the internet ie

Smartphone

About the definition of IMC still no common agreement exist (Kim et al 2004) Som

e scholars think that IMC is a new concept while for others they support that the idea

of IMC is not new but just a more efficient way to manage the marketing communicat

ion tools (Kitchen amp Schultz 2009) In order to convey the messages clearly it is nec

essary for the customers to see and hear the same message This could be achieved onl

y if the different marketing communication tools support each-other

As we all know the company of Samsung owns more than $117 billion revenue in 20

11 with global technology (wwwsamsungcom) so much evidence about the integrati

on of the different communication tools could be found First the logo and the key me

ssages are globally standardized The Galaxy S tablet message is similar ndash ldquofreedomrdquo

17 25

ldquolive without limitsrdquo Other similar messages related to the feeling of being free are al

so attached to Galaxy S tablet worldwide

There is also a powerful integration between the different marketing communication t

ools and media For example integration between traditional and online media In ma

ny countries all sales promotions are integrated with direct marketing ndash customers are

required to provide their basic details and e-mails Social media is also very well integ

rated with sales promotions Print adverts are also integrated with sales promotion and

direct to the Samsung website

In an company such as Samsung the main thing creating difficulties is its size It is dif

ficult to co-ordinate the marketing activities in a company with nearly 160 000 emplo

yees Samsung has several official websites ndash the main site (Samsungcom) a site dev

oted only to mobile phone users in specific countries This could lead to confusion for

the customer and currently Samsung is merging these local sites with its global websit

e

18 25

References

Wall Street Journal (2009) Motorola Executive Helped spur Cellphone Revolution

Wall Street Journal 20ndash21 June 2009 p A10

Funk J 2001 The mobile Internet How Japan dialed up and the West disconnected

Pembroke Bermuda ISI Publications

19 25

Apple 2010 ldquoiPhone Developer Program License Agreementrdquo

httpwwwefforgfiles20100302_iphone_dev_agrpdf

Cusumano Michael 2010 ldquoTechnology Strategy and Management The Evolution of

Platform Thinkingrdquo Communications of the ACM 53 (1) 32-34

Martinez Salazar and Marco Martinez 2010 ldquoThe Mobile Phone User Identifying

Top Mobile Applicationsrdquo (April 1 2010) Available at SSRN

httpssrncomabstract=1691210

P Kotler (1980) Marketing Management 3th Edition Published by Prentice

Kotler P Armstrong G Saunders J And Wong V (1999) Principles of Marketing

2nd European edn Pretice- Hall

Denis Adcock Al Halborg and Caroline Ross(2001) Marketing Principles and

Practice 4th edn published by FT Prentice Hall

C Fill (2009) Marketing communications 5th edition Pearson Education

P Kotler (2009) Marketing Management European edition FT Prentice Hall

20 25

Ries A and trout J (1981) Positioning the Battle for Your Mind McGraw- Hall

David Jobber (2006) Principles and Practice of Marketing 6th edn published by

McGraw-Hill

Anderson PH 2001 Relationship development and marketing communication An

integrative model The Journal of Business and Industrial

Pickton D amp Hartley B (1998) Measuring integration an assessment of the quality

of integrated marketing communications International Journal of Advertising

D Schultz amp C Patti (2009) The evolution of IMC IMC in a customer-driven

marketplace Journal of Marketing Communications Vol 15 Nos 2ndash3 AprilndashJuly

2009 pp 75ndash84

L Percy (2008) Strategic integrated marketing communication theory and practice

Butterworth Heinemann

F Brassington amp S Pettitt (2007) Essentials of Marketing second edn FT Prentice

Hall

Spreng RA and Mackoy RD (1996) An empirical examination of a model of

21 25

perceived service quality and satisfaction Journal of Retailing Vol 72 pp 201-14

Shemwell DJ Yavas U and Bilgin Z 11130881998) ``Customer-service provider

relationships an empirical test of a model of service quality satisfaction and

relationship oriented outcome International Journal of Service Industry

Management Vol 9 pp 155-68

Newman K and Pyne T (1996) Quality matters junior doctorsrsquo perceptions

Journal of Management in Medicine Vol 10 No 4 pp 12-23

Morrison J(2006) The International Business Environment 2nd edition Published

by Palgrave MacMillan

Baker J (2007) Marketing strategy and management Publisher Palgrave Macmillan

Blythe J (2006) Marketing Published by SAGE

Egan J (2007) Marketing communications Published by Thomson Learning

Finne amp Gronroos (2009) ldquoRethinking marketing communication From integrated

marketing communication to relationship communicationrdquo Journal of Marketing

Communications Vol 15 Nos 2ndash3 AprilndashJuly 2009 179ndash195

22 25

Kotler P et al (2005) Principles of marketing 4th edition Publisher Pearson

Education

London Butterworth-Heinemann

Kotler P (2003) Marketing management 11th edition Publisher Pearson Education

Kim I Han D amp Schultz D (2004) ldquoUnderstanding the Diffusion of Integrated

Marketing Communicationsrdquo Journal of Advertising Research March 2004 pp 31-45

Kitchen P amp Schultz D (2009) ldquoIMC New horizonfalse dawn for a marketplace in

turmoilrdquo Journal of Marketing Communications Vol 15 Nos 2ndash3 AprilndashJuly

2009 197ndash204

Pickton D amp Broderick A (2005) Integrated Marketing Communications 2nd edition

Publisher Pearson Education

Russell E The fundamentals of marketing Publisher AVA Academia

httpnewscnetcom

23 25

httpwwwecirclecom

httpwwwyoutubecom

httpchroniclingamericalocgovlccnsn850424621906-05-21ed-1seq-7

httpwwwmsnbcmsncomid7432915nstechnology_and_science-wirelesstfirst-

cell-phone-true-brickT2o-y3mP5JE

httpwwwumtsworldcomumtshistoryhtm

Mobile market httpwwwgartnercomitpagejspid=1455314

httpwwwsamsungcom

24 25

  1. Widget PGBM 15 Marketing Management
Page 10: PGBM 15 Marketing Management

Google has won the confidence of most mobile phone manufacturers around the

world according to the statistics of the Canalys (2010)

3 The importance of marketing management

The marketing guru Philip Kotler has contributed to the development of marketing

management in our modern world According to his early publications the marketing

definition is the human activity directed at satisfying needs and wants through an

exchange process (Kotler 1980) Along with the development of the market and

management theories Kotler and other marketing professionals added more meanings

into the definition of the marketing Marketing is a social managerial process by

which individuals and groups obtain what they need and want through creating and

exchanging products and value with others (Kotler et al 1999)

In fact the American Marketing Association has its own definition of marketing

which considered marketing being ldquoan organisational function and a set of processes

for creating communicating and delivering value to customers and for managing

customer relationships in ways that benefit the organisation and its stakeholdersrdquo

There is no doubt that marketing has long been playing an essential role of developing

all kinds of businesses for all organisations Without proper marketing management

all kinds of businesses would have difficulty in developing effective marketing plans

9 25

implementing their marketing activities to capture more customers and market shares

and eventually helping to improve their business performance in our rapidly-changing

market environment around the world The global market has been changing so

quickly that leads to more uncertainties than ever before In light of this it is very

critical for all kinds of businesses to have effective marketing management in place to

help organisations to respond and react to the ever-changing environment

There are two kinds of environment for all kinds of businesses ie external and

internal environment Both of them can have great impact on all business

organizations the market places where they run businesses and the co-relationship

among all factors (Jobber 2006) In light of this it is very important Thus

understanding environment and using the environment scanning are important

activities for all marketers and organizations Denis A at al (2001) argued that the

marketing environment factors are often referred to as Social Technological

Economic and Political varibles (PEST) In reality the PEST framework for

environmental auditing has been widely used in business work

After analysis the external environment marketers can make decisions and take

relevant approaches to allow organizations to identify and capitalize opportunities

(Kotler et al 1999) Based upon this marketers can then conduct necessary research to

indentify the market segmentations ldquoMarketing research is an essential tool for the

10 25

marketing manager in helping to define and locate market segments and understand

their needs and wantsrdquo (Jobber 2006)

Fill (2009) argues that ldquosegmentation is necessary because a single product is unlikely

to meet the needs of all customers in a mass marketrdquo Thus with proper segmentation

organizations can effectively satisfy targeted customersrsquo needs

After the segmentation process marketers can move forward to utilize the techniques

of marketing mix to carry out the whole marketing activities ldquoFor most physical

goods the marketing mix consists of four elements product price place and

promotion For services the marketing mix can be extended to seven elements with

the addition of people processes and physical evidencerdquo (David Jobber 2006)

Whether marketers can effectively communicate messages to targeted customers or

audience is closely related to the promotion ie the marketing communications

which describe the most important areas of marketing (Pickton amp Hartley 1998) And

the marketing communication mix consists of five communication channels

advertising public relations personal selling direct marketing and sales

promotionFill C (2009)

11 25

With the systematic planning and effective implementation of relevant marketing

techniques marketers can ensure the products or service being successful in the

market

4 Marketing of Samsung

Samsung is one of the largest technology companies in the world founded in 1938 It

has almost 16000 employees in the world and its revenue for exceeds $117 billion in

2009 In the world most countries have Samsung Company Its headquarters are

located in Seoul South Korea Samsung has a big range of home appliances and

consumer electronics The company famous products in the world are TV ldquoGalaxyrdquo

tablet and mobile phones Now Samsung is the biggest mobile phones company in

the world

41 Marketing mix at Samsung

For the definition of marketing communications so far there is still no strict standard

According to Fill (2009) he declares that marketing communications is ldquoa manageme

nt process in which an organization engages with its various audiencesrdquo This include

s various kinds of activities From the view of Egan (2002) he thinks that marketing c

ommunications are ldquothe methods by which the suppliers who provide the goods value

s andor ideas services shows themselves to their target audiences aiming to stimulate

12 25

the dialogue successfully and form a better commercial or other relationshipsrdquo In oth

er words marketing communications are those things which can be transmitted from t

he company to the target audience Fill (2009) once says that there are four major func

tions ndash to differentiate to reinforce to inform and to persuade Selecting the first lette

rs of these four functions we can get DRIP Marketing communications are part of the

marketing mix which consists of Price Place Product and Promotion or the four Ps

According to Fill (2009) they consist of tools media and messages

42 Samsungrsquos message

Message can be defined as a set of symbols words and visual material (pictures

photos) that is sent to the target audience The company (in this case Samsung) could

be a sender as well as its brand name or someone who is advertising their products

(football players celebrities etc) (Kotler 2005) Kotler also argues that a message is

said to be good if it is easy to be understood by the target audience

Samsungrsquos brand main point is ldquoturn on tomorrowrdquo but sometime the company

develop is not follow its brand It stresses on the innovativeness of the companyrsquos

products The old message was ldquoeveryonersquos invitedrdquo but now the company does not

use the old message anymore The company has divided its messages to the target

audience in terms of the product range The main message that is attached to

13 25

Samsungrsquos new Galaxy tablets is ldquoLife without limitsrdquo All other messages regarding

this product range are related to the freedom that they provide In the USA the

message is ldquofeel free to Tabrdquo On the Samsungrsquos YouTube page one can see the same

messages

Samsungrsquos messages are emotional rather than rational That because the nature of the

Samsungrsquos products But there is a little of rational messages like ldquofeaturing a 7rdquo

screenrdquo which are necessary to show the product what the different between other

competitors I think that this type of messages is appropriate to be used If just use

emotional messages the customers may not know what exactly makes Samsungrsquos

products different than the others

43 Advertising at Samsung

Advertising is defined as ldquoany paid form of non-personal communication about an

organization product service or idea by an identified sponsorrdquo Belch amp Belch

(2002) When using advertising the message is normally transmitted via mass media ndash

TV radio newspapers etc A strong feature of advertising is that is can reach many

people sometimes even millions at the same time This is why it is used by large

companies (like Samsung) which aim to reach the mass market The company has

good control over the message and its design but there are almost no opportunities for

14 25

a feedback from the target audience Blythe (2006) argues that advertising has lower

credibility compared to the other marketing communication tools Therefore there is

no warranty that advertising will make the customers to buy the particular product or

service But it is an excellent tool for informing the target audience It is the most

expensive tool but has lowest price per customer reached Companies still spend

millions on advertising each year

Samsungrsquos advertisements are mainly emotional stressing the freedom that the

products provide but have a rational element stressing on their functionality Same

product carries the same type of information but stresses on the innovative technical

features (Google Maps with voice search etc) which explain why it is alleged to be

ldquothe best Android based smartphone in the worldrdquo

44 Sales promotion at Samsung

Belch amp Belch (2002) define sales promotion as ldquothose marketing activities that

provide extra value or incentives to the sales force the distributors or the ultimate

consumer and can stimulate immediate salesrdquo They key word here is ldquoimmediaterdquo

customers are inclined to act here and now Sales promotionsrsquo aim is to achieve short-

term increase in sales Baker (2007) argues that their credibility is at medium level

and the message is well controlled It is important for the sales promotion to continue

15 25

for a short period of time If it continues too long the customers may assume the

discounted price as a normal one and to postpone their buying decision until next

promotion

You can find all Samsung promotions on their website The customer can change the

country of residence to see the local promotions But the sites are different Due to

nature of the products the vast majority of sales promotions are of a lottery type where

there a big prize is won In my opinion the company uses this way not because to

increase its short-term sales but to increase the brand awareness and increase new

subscribers that who e-mail addresses will be used for direct marketing purposes

45 Social media at Samsung

Social media is a new phenomenon it develops speed very fast and more and more

important for the companyrsquos marketing communication The most powerful feature of

social networking is that it allows the customers and the company to into a dialogue

Word-of-Mouth that is spread around the social networks is another advantage

Samsung uses social media for both engaging with its customers and advertising It

has several Facebook pages divided by country and by product Galaxy product range

has fan pages but other products do not Similarly Samsung has fan pages in many

countries In my opinion Samsung still have many things can do by social media

16 25

5 Conclusion

Over the years all kinds of organisations have been undertaking varies of marketing

activities in order to increase their competitiveness in the market which allows them

to sustain their market shares and achieve organisational goals in the business world

Along with the development of mobile phone internet and personal computing

devices a new internet world emerges ie mobile internet In light of this there is a

new name for mobile phones that can effectively access to the internet ie

Smartphone

About the definition of IMC still no common agreement exist (Kim et al 2004) Som

e scholars think that IMC is a new concept while for others they support that the idea

of IMC is not new but just a more efficient way to manage the marketing communicat

ion tools (Kitchen amp Schultz 2009) In order to convey the messages clearly it is nec

essary for the customers to see and hear the same message This could be achieved onl

y if the different marketing communication tools support each-other

As we all know the company of Samsung owns more than $117 billion revenue in 20

11 with global technology (wwwsamsungcom) so much evidence about the integrati

on of the different communication tools could be found First the logo and the key me

ssages are globally standardized The Galaxy S tablet message is similar ndash ldquofreedomrdquo

17 25

ldquolive without limitsrdquo Other similar messages related to the feeling of being free are al

so attached to Galaxy S tablet worldwide

There is also a powerful integration between the different marketing communication t

ools and media For example integration between traditional and online media In ma

ny countries all sales promotions are integrated with direct marketing ndash customers are

required to provide their basic details and e-mails Social media is also very well integ

rated with sales promotions Print adverts are also integrated with sales promotion and

direct to the Samsung website

In an company such as Samsung the main thing creating difficulties is its size It is dif

ficult to co-ordinate the marketing activities in a company with nearly 160 000 emplo

yees Samsung has several official websites ndash the main site (Samsungcom) a site dev

oted only to mobile phone users in specific countries This could lead to confusion for

the customer and currently Samsung is merging these local sites with its global websit

e

18 25

References

Wall Street Journal (2009) Motorola Executive Helped spur Cellphone Revolution

Wall Street Journal 20ndash21 June 2009 p A10

Funk J 2001 The mobile Internet How Japan dialed up and the West disconnected

Pembroke Bermuda ISI Publications

19 25

Apple 2010 ldquoiPhone Developer Program License Agreementrdquo

httpwwwefforgfiles20100302_iphone_dev_agrpdf

Cusumano Michael 2010 ldquoTechnology Strategy and Management The Evolution of

Platform Thinkingrdquo Communications of the ACM 53 (1) 32-34

Martinez Salazar and Marco Martinez 2010 ldquoThe Mobile Phone User Identifying

Top Mobile Applicationsrdquo (April 1 2010) Available at SSRN

httpssrncomabstract=1691210

P Kotler (1980) Marketing Management 3th Edition Published by Prentice

Kotler P Armstrong G Saunders J And Wong V (1999) Principles of Marketing

2nd European edn Pretice- Hall

Denis Adcock Al Halborg and Caroline Ross(2001) Marketing Principles and

Practice 4th edn published by FT Prentice Hall

C Fill (2009) Marketing communications 5th edition Pearson Education

P Kotler (2009) Marketing Management European edition FT Prentice Hall

20 25

Ries A and trout J (1981) Positioning the Battle for Your Mind McGraw- Hall

David Jobber (2006) Principles and Practice of Marketing 6th edn published by

McGraw-Hill

Anderson PH 2001 Relationship development and marketing communication An

integrative model The Journal of Business and Industrial

Pickton D amp Hartley B (1998) Measuring integration an assessment of the quality

of integrated marketing communications International Journal of Advertising

D Schultz amp C Patti (2009) The evolution of IMC IMC in a customer-driven

marketplace Journal of Marketing Communications Vol 15 Nos 2ndash3 AprilndashJuly

2009 pp 75ndash84

L Percy (2008) Strategic integrated marketing communication theory and practice

Butterworth Heinemann

F Brassington amp S Pettitt (2007) Essentials of Marketing second edn FT Prentice

Hall

Spreng RA and Mackoy RD (1996) An empirical examination of a model of

21 25

perceived service quality and satisfaction Journal of Retailing Vol 72 pp 201-14

Shemwell DJ Yavas U and Bilgin Z 11130881998) ``Customer-service provider

relationships an empirical test of a model of service quality satisfaction and

relationship oriented outcome International Journal of Service Industry

Management Vol 9 pp 155-68

Newman K and Pyne T (1996) Quality matters junior doctorsrsquo perceptions

Journal of Management in Medicine Vol 10 No 4 pp 12-23

Morrison J(2006) The International Business Environment 2nd edition Published

by Palgrave MacMillan

Baker J (2007) Marketing strategy and management Publisher Palgrave Macmillan

Blythe J (2006) Marketing Published by SAGE

Egan J (2007) Marketing communications Published by Thomson Learning

Finne amp Gronroos (2009) ldquoRethinking marketing communication From integrated

marketing communication to relationship communicationrdquo Journal of Marketing

Communications Vol 15 Nos 2ndash3 AprilndashJuly 2009 179ndash195

22 25

Kotler P et al (2005) Principles of marketing 4th edition Publisher Pearson

Education

London Butterworth-Heinemann

Kotler P (2003) Marketing management 11th edition Publisher Pearson Education

Kim I Han D amp Schultz D (2004) ldquoUnderstanding the Diffusion of Integrated

Marketing Communicationsrdquo Journal of Advertising Research March 2004 pp 31-45

Kitchen P amp Schultz D (2009) ldquoIMC New horizonfalse dawn for a marketplace in

turmoilrdquo Journal of Marketing Communications Vol 15 Nos 2ndash3 AprilndashJuly

2009 197ndash204

Pickton D amp Broderick A (2005) Integrated Marketing Communications 2nd edition

Publisher Pearson Education

Russell E The fundamentals of marketing Publisher AVA Academia

httpnewscnetcom

23 25

httpwwwecirclecom

httpwwwyoutubecom

httpchroniclingamericalocgovlccnsn850424621906-05-21ed-1seq-7

httpwwwmsnbcmsncomid7432915nstechnology_and_science-wirelesstfirst-

cell-phone-true-brickT2o-y3mP5JE

httpwwwumtsworldcomumtshistoryhtm

Mobile market httpwwwgartnercomitpagejspid=1455314

httpwwwsamsungcom

24 25

  1. Widget PGBM 15 Marketing Management
Page 11: PGBM 15 Marketing Management

implementing their marketing activities to capture more customers and market shares

and eventually helping to improve their business performance in our rapidly-changing

market environment around the world The global market has been changing so

quickly that leads to more uncertainties than ever before In light of this it is very

critical for all kinds of businesses to have effective marketing management in place to

help organisations to respond and react to the ever-changing environment

There are two kinds of environment for all kinds of businesses ie external and

internal environment Both of them can have great impact on all business

organizations the market places where they run businesses and the co-relationship

among all factors (Jobber 2006) In light of this it is very important Thus

understanding environment and using the environment scanning are important

activities for all marketers and organizations Denis A at al (2001) argued that the

marketing environment factors are often referred to as Social Technological

Economic and Political varibles (PEST) In reality the PEST framework for

environmental auditing has been widely used in business work

After analysis the external environment marketers can make decisions and take

relevant approaches to allow organizations to identify and capitalize opportunities

(Kotler et al 1999) Based upon this marketers can then conduct necessary research to

indentify the market segmentations ldquoMarketing research is an essential tool for the

10 25

marketing manager in helping to define and locate market segments and understand

their needs and wantsrdquo (Jobber 2006)

Fill (2009) argues that ldquosegmentation is necessary because a single product is unlikely

to meet the needs of all customers in a mass marketrdquo Thus with proper segmentation

organizations can effectively satisfy targeted customersrsquo needs

After the segmentation process marketers can move forward to utilize the techniques

of marketing mix to carry out the whole marketing activities ldquoFor most physical

goods the marketing mix consists of four elements product price place and

promotion For services the marketing mix can be extended to seven elements with

the addition of people processes and physical evidencerdquo (David Jobber 2006)

Whether marketers can effectively communicate messages to targeted customers or

audience is closely related to the promotion ie the marketing communications

which describe the most important areas of marketing (Pickton amp Hartley 1998) And

the marketing communication mix consists of five communication channels

advertising public relations personal selling direct marketing and sales

promotionFill C (2009)

11 25

With the systematic planning and effective implementation of relevant marketing

techniques marketers can ensure the products or service being successful in the

market

4 Marketing of Samsung

Samsung is one of the largest technology companies in the world founded in 1938 It

has almost 16000 employees in the world and its revenue for exceeds $117 billion in

2009 In the world most countries have Samsung Company Its headquarters are

located in Seoul South Korea Samsung has a big range of home appliances and

consumer electronics The company famous products in the world are TV ldquoGalaxyrdquo

tablet and mobile phones Now Samsung is the biggest mobile phones company in

the world

41 Marketing mix at Samsung

For the definition of marketing communications so far there is still no strict standard

According to Fill (2009) he declares that marketing communications is ldquoa manageme

nt process in which an organization engages with its various audiencesrdquo This include

s various kinds of activities From the view of Egan (2002) he thinks that marketing c

ommunications are ldquothe methods by which the suppliers who provide the goods value

s andor ideas services shows themselves to their target audiences aiming to stimulate

12 25

the dialogue successfully and form a better commercial or other relationshipsrdquo In oth

er words marketing communications are those things which can be transmitted from t

he company to the target audience Fill (2009) once says that there are four major func

tions ndash to differentiate to reinforce to inform and to persuade Selecting the first lette

rs of these four functions we can get DRIP Marketing communications are part of the

marketing mix which consists of Price Place Product and Promotion or the four Ps

According to Fill (2009) they consist of tools media and messages

42 Samsungrsquos message

Message can be defined as a set of symbols words and visual material (pictures

photos) that is sent to the target audience The company (in this case Samsung) could

be a sender as well as its brand name or someone who is advertising their products

(football players celebrities etc) (Kotler 2005) Kotler also argues that a message is

said to be good if it is easy to be understood by the target audience

Samsungrsquos brand main point is ldquoturn on tomorrowrdquo but sometime the company

develop is not follow its brand It stresses on the innovativeness of the companyrsquos

products The old message was ldquoeveryonersquos invitedrdquo but now the company does not

use the old message anymore The company has divided its messages to the target

audience in terms of the product range The main message that is attached to

13 25

Samsungrsquos new Galaxy tablets is ldquoLife without limitsrdquo All other messages regarding

this product range are related to the freedom that they provide In the USA the

message is ldquofeel free to Tabrdquo On the Samsungrsquos YouTube page one can see the same

messages

Samsungrsquos messages are emotional rather than rational That because the nature of the

Samsungrsquos products But there is a little of rational messages like ldquofeaturing a 7rdquo

screenrdquo which are necessary to show the product what the different between other

competitors I think that this type of messages is appropriate to be used If just use

emotional messages the customers may not know what exactly makes Samsungrsquos

products different than the others

43 Advertising at Samsung

Advertising is defined as ldquoany paid form of non-personal communication about an

organization product service or idea by an identified sponsorrdquo Belch amp Belch

(2002) When using advertising the message is normally transmitted via mass media ndash

TV radio newspapers etc A strong feature of advertising is that is can reach many

people sometimes even millions at the same time This is why it is used by large

companies (like Samsung) which aim to reach the mass market The company has

good control over the message and its design but there are almost no opportunities for

14 25

a feedback from the target audience Blythe (2006) argues that advertising has lower

credibility compared to the other marketing communication tools Therefore there is

no warranty that advertising will make the customers to buy the particular product or

service But it is an excellent tool for informing the target audience It is the most

expensive tool but has lowest price per customer reached Companies still spend

millions on advertising each year

Samsungrsquos advertisements are mainly emotional stressing the freedom that the

products provide but have a rational element stressing on their functionality Same

product carries the same type of information but stresses on the innovative technical

features (Google Maps with voice search etc) which explain why it is alleged to be

ldquothe best Android based smartphone in the worldrdquo

44 Sales promotion at Samsung

Belch amp Belch (2002) define sales promotion as ldquothose marketing activities that

provide extra value or incentives to the sales force the distributors or the ultimate

consumer and can stimulate immediate salesrdquo They key word here is ldquoimmediaterdquo

customers are inclined to act here and now Sales promotionsrsquo aim is to achieve short-

term increase in sales Baker (2007) argues that their credibility is at medium level

and the message is well controlled It is important for the sales promotion to continue

15 25

for a short period of time If it continues too long the customers may assume the

discounted price as a normal one and to postpone their buying decision until next

promotion

You can find all Samsung promotions on their website The customer can change the

country of residence to see the local promotions But the sites are different Due to

nature of the products the vast majority of sales promotions are of a lottery type where

there a big prize is won In my opinion the company uses this way not because to

increase its short-term sales but to increase the brand awareness and increase new

subscribers that who e-mail addresses will be used for direct marketing purposes

45 Social media at Samsung

Social media is a new phenomenon it develops speed very fast and more and more

important for the companyrsquos marketing communication The most powerful feature of

social networking is that it allows the customers and the company to into a dialogue

Word-of-Mouth that is spread around the social networks is another advantage

Samsung uses social media for both engaging with its customers and advertising It

has several Facebook pages divided by country and by product Galaxy product range

has fan pages but other products do not Similarly Samsung has fan pages in many

countries In my opinion Samsung still have many things can do by social media

16 25

5 Conclusion

Over the years all kinds of organisations have been undertaking varies of marketing

activities in order to increase their competitiveness in the market which allows them

to sustain their market shares and achieve organisational goals in the business world

Along with the development of mobile phone internet and personal computing

devices a new internet world emerges ie mobile internet In light of this there is a

new name for mobile phones that can effectively access to the internet ie

Smartphone

About the definition of IMC still no common agreement exist (Kim et al 2004) Som

e scholars think that IMC is a new concept while for others they support that the idea

of IMC is not new but just a more efficient way to manage the marketing communicat

ion tools (Kitchen amp Schultz 2009) In order to convey the messages clearly it is nec

essary for the customers to see and hear the same message This could be achieved onl

y if the different marketing communication tools support each-other

As we all know the company of Samsung owns more than $117 billion revenue in 20

11 with global technology (wwwsamsungcom) so much evidence about the integrati

on of the different communication tools could be found First the logo and the key me

ssages are globally standardized The Galaxy S tablet message is similar ndash ldquofreedomrdquo

17 25

ldquolive without limitsrdquo Other similar messages related to the feeling of being free are al

so attached to Galaxy S tablet worldwide

There is also a powerful integration between the different marketing communication t

ools and media For example integration between traditional and online media In ma

ny countries all sales promotions are integrated with direct marketing ndash customers are

required to provide their basic details and e-mails Social media is also very well integ

rated with sales promotions Print adverts are also integrated with sales promotion and

direct to the Samsung website

In an company such as Samsung the main thing creating difficulties is its size It is dif

ficult to co-ordinate the marketing activities in a company with nearly 160 000 emplo

yees Samsung has several official websites ndash the main site (Samsungcom) a site dev

oted only to mobile phone users in specific countries This could lead to confusion for

the customer and currently Samsung is merging these local sites with its global websit

e

18 25

References

Wall Street Journal (2009) Motorola Executive Helped spur Cellphone Revolution

Wall Street Journal 20ndash21 June 2009 p A10

Funk J 2001 The mobile Internet How Japan dialed up and the West disconnected

Pembroke Bermuda ISI Publications

19 25

Apple 2010 ldquoiPhone Developer Program License Agreementrdquo

httpwwwefforgfiles20100302_iphone_dev_agrpdf

Cusumano Michael 2010 ldquoTechnology Strategy and Management The Evolution of

Platform Thinkingrdquo Communications of the ACM 53 (1) 32-34

Martinez Salazar and Marco Martinez 2010 ldquoThe Mobile Phone User Identifying

Top Mobile Applicationsrdquo (April 1 2010) Available at SSRN

httpssrncomabstract=1691210

P Kotler (1980) Marketing Management 3th Edition Published by Prentice

Kotler P Armstrong G Saunders J And Wong V (1999) Principles of Marketing

2nd European edn Pretice- Hall

Denis Adcock Al Halborg and Caroline Ross(2001) Marketing Principles and

Practice 4th edn published by FT Prentice Hall

C Fill (2009) Marketing communications 5th edition Pearson Education

P Kotler (2009) Marketing Management European edition FT Prentice Hall

20 25

Ries A and trout J (1981) Positioning the Battle for Your Mind McGraw- Hall

David Jobber (2006) Principles and Practice of Marketing 6th edn published by

McGraw-Hill

Anderson PH 2001 Relationship development and marketing communication An

integrative model The Journal of Business and Industrial

Pickton D amp Hartley B (1998) Measuring integration an assessment of the quality

of integrated marketing communications International Journal of Advertising

D Schultz amp C Patti (2009) The evolution of IMC IMC in a customer-driven

marketplace Journal of Marketing Communications Vol 15 Nos 2ndash3 AprilndashJuly

2009 pp 75ndash84

L Percy (2008) Strategic integrated marketing communication theory and practice

Butterworth Heinemann

F Brassington amp S Pettitt (2007) Essentials of Marketing second edn FT Prentice

Hall

Spreng RA and Mackoy RD (1996) An empirical examination of a model of

21 25

perceived service quality and satisfaction Journal of Retailing Vol 72 pp 201-14

Shemwell DJ Yavas U and Bilgin Z 11130881998) ``Customer-service provider

relationships an empirical test of a model of service quality satisfaction and

relationship oriented outcome International Journal of Service Industry

Management Vol 9 pp 155-68

Newman K and Pyne T (1996) Quality matters junior doctorsrsquo perceptions

Journal of Management in Medicine Vol 10 No 4 pp 12-23

Morrison J(2006) The International Business Environment 2nd edition Published

by Palgrave MacMillan

Baker J (2007) Marketing strategy and management Publisher Palgrave Macmillan

Blythe J (2006) Marketing Published by SAGE

Egan J (2007) Marketing communications Published by Thomson Learning

Finne amp Gronroos (2009) ldquoRethinking marketing communication From integrated

marketing communication to relationship communicationrdquo Journal of Marketing

Communications Vol 15 Nos 2ndash3 AprilndashJuly 2009 179ndash195

22 25

Kotler P et al (2005) Principles of marketing 4th edition Publisher Pearson

Education

London Butterworth-Heinemann

Kotler P (2003) Marketing management 11th edition Publisher Pearson Education

Kim I Han D amp Schultz D (2004) ldquoUnderstanding the Diffusion of Integrated

Marketing Communicationsrdquo Journal of Advertising Research March 2004 pp 31-45

Kitchen P amp Schultz D (2009) ldquoIMC New horizonfalse dawn for a marketplace in

turmoilrdquo Journal of Marketing Communications Vol 15 Nos 2ndash3 AprilndashJuly

2009 197ndash204

Pickton D amp Broderick A (2005) Integrated Marketing Communications 2nd edition

Publisher Pearson Education

Russell E The fundamentals of marketing Publisher AVA Academia

httpnewscnetcom

23 25

httpwwwecirclecom

httpwwwyoutubecom

httpchroniclingamericalocgovlccnsn850424621906-05-21ed-1seq-7

httpwwwmsnbcmsncomid7432915nstechnology_and_science-wirelesstfirst-

cell-phone-true-brickT2o-y3mP5JE

httpwwwumtsworldcomumtshistoryhtm

Mobile market httpwwwgartnercomitpagejspid=1455314

httpwwwsamsungcom

24 25

  1. Widget PGBM 15 Marketing Management
Page 12: PGBM 15 Marketing Management

marketing manager in helping to define and locate market segments and understand

their needs and wantsrdquo (Jobber 2006)

Fill (2009) argues that ldquosegmentation is necessary because a single product is unlikely

to meet the needs of all customers in a mass marketrdquo Thus with proper segmentation

organizations can effectively satisfy targeted customersrsquo needs

After the segmentation process marketers can move forward to utilize the techniques

of marketing mix to carry out the whole marketing activities ldquoFor most physical

goods the marketing mix consists of four elements product price place and

promotion For services the marketing mix can be extended to seven elements with

the addition of people processes and physical evidencerdquo (David Jobber 2006)

Whether marketers can effectively communicate messages to targeted customers or

audience is closely related to the promotion ie the marketing communications

which describe the most important areas of marketing (Pickton amp Hartley 1998) And

the marketing communication mix consists of five communication channels

advertising public relations personal selling direct marketing and sales

promotionFill C (2009)

11 25

With the systematic planning and effective implementation of relevant marketing

techniques marketers can ensure the products or service being successful in the

market

4 Marketing of Samsung

Samsung is one of the largest technology companies in the world founded in 1938 It

has almost 16000 employees in the world and its revenue for exceeds $117 billion in

2009 In the world most countries have Samsung Company Its headquarters are

located in Seoul South Korea Samsung has a big range of home appliances and

consumer electronics The company famous products in the world are TV ldquoGalaxyrdquo

tablet and mobile phones Now Samsung is the biggest mobile phones company in

the world

41 Marketing mix at Samsung

For the definition of marketing communications so far there is still no strict standard

According to Fill (2009) he declares that marketing communications is ldquoa manageme

nt process in which an organization engages with its various audiencesrdquo This include

s various kinds of activities From the view of Egan (2002) he thinks that marketing c

ommunications are ldquothe methods by which the suppliers who provide the goods value

s andor ideas services shows themselves to their target audiences aiming to stimulate

12 25

the dialogue successfully and form a better commercial or other relationshipsrdquo In oth

er words marketing communications are those things which can be transmitted from t

he company to the target audience Fill (2009) once says that there are four major func

tions ndash to differentiate to reinforce to inform and to persuade Selecting the first lette

rs of these four functions we can get DRIP Marketing communications are part of the

marketing mix which consists of Price Place Product and Promotion or the four Ps

According to Fill (2009) they consist of tools media and messages

42 Samsungrsquos message

Message can be defined as a set of symbols words and visual material (pictures

photos) that is sent to the target audience The company (in this case Samsung) could

be a sender as well as its brand name or someone who is advertising their products

(football players celebrities etc) (Kotler 2005) Kotler also argues that a message is

said to be good if it is easy to be understood by the target audience

Samsungrsquos brand main point is ldquoturn on tomorrowrdquo but sometime the company

develop is not follow its brand It stresses on the innovativeness of the companyrsquos

products The old message was ldquoeveryonersquos invitedrdquo but now the company does not

use the old message anymore The company has divided its messages to the target

audience in terms of the product range The main message that is attached to

13 25

Samsungrsquos new Galaxy tablets is ldquoLife without limitsrdquo All other messages regarding

this product range are related to the freedom that they provide In the USA the

message is ldquofeel free to Tabrdquo On the Samsungrsquos YouTube page one can see the same

messages

Samsungrsquos messages are emotional rather than rational That because the nature of the

Samsungrsquos products But there is a little of rational messages like ldquofeaturing a 7rdquo

screenrdquo which are necessary to show the product what the different between other

competitors I think that this type of messages is appropriate to be used If just use

emotional messages the customers may not know what exactly makes Samsungrsquos

products different than the others

43 Advertising at Samsung

Advertising is defined as ldquoany paid form of non-personal communication about an

organization product service or idea by an identified sponsorrdquo Belch amp Belch

(2002) When using advertising the message is normally transmitted via mass media ndash

TV radio newspapers etc A strong feature of advertising is that is can reach many

people sometimes even millions at the same time This is why it is used by large

companies (like Samsung) which aim to reach the mass market The company has

good control over the message and its design but there are almost no opportunities for

14 25

a feedback from the target audience Blythe (2006) argues that advertising has lower

credibility compared to the other marketing communication tools Therefore there is

no warranty that advertising will make the customers to buy the particular product or

service But it is an excellent tool for informing the target audience It is the most

expensive tool but has lowest price per customer reached Companies still spend

millions on advertising each year

Samsungrsquos advertisements are mainly emotional stressing the freedom that the

products provide but have a rational element stressing on their functionality Same

product carries the same type of information but stresses on the innovative technical

features (Google Maps with voice search etc) which explain why it is alleged to be

ldquothe best Android based smartphone in the worldrdquo

44 Sales promotion at Samsung

Belch amp Belch (2002) define sales promotion as ldquothose marketing activities that

provide extra value or incentives to the sales force the distributors or the ultimate

consumer and can stimulate immediate salesrdquo They key word here is ldquoimmediaterdquo

customers are inclined to act here and now Sales promotionsrsquo aim is to achieve short-

term increase in sales Baker (2007) argues that their credibility is at medium level

and the message is well controlled It is important for the sales promotion to continue

15 25

for a short period of time If it continues too long the customers may assume the

discounted price as a normal one and to postpone their buying decision until next

promotion

You can find all Samsung promotions on their website The customer can change the

country of residence to see the local promotions But the sites are different Due to

nature of the products the vast majority of sales promotions are of a lottery type where

there a big prize is won In my opinion the company uses this way not because to

increase its short-term sales but to increase the brand awareness and increase new

subscribers that who e-mail addresses will be used for direct marketing purposes

45 Social media at Samsung

Social media is a new phenomenon it develops speed very fast and more and more

important for the companyrsquos marketing communication The most powerful feature of

social networking is that it allows the customers and the company to into a dialogue

Word-of-Mouth that is spread around the social networks is another advantage

Samsung uses social media for both engaging with its customers and advertising It

has several Facebook pages divided by country and by product Galaxy product range

has fan pages but other products do not Similarly Samsung has fan pages in many

countries In my opinion Samsung still have many things can do by social media

16 25

5 Conclusion

Over the years all kinds of organisations have been undertaking varies of marketing

activities in order to increase their competitiveness in the market which allows them

to sustain their market shares and achieve organisational goals in the business world

Along with the development of mobile phone internet and personal computing

devices a new internet world emerges ie mobile internet In light of this there is a

new name for mobile phones that can effectively access to the internet ie

Smartphone

About the definition of IMC still no common agreement exist (Kim et al 2004) Som

e scholars think that IMC is a new concept while for others they support that the idea

of IMC is not new but just a more efficient way to manage the marketing communicat

ion tools (Kitchen amp Schultz 2009) In order to convey the messages clearly it is nec

essary for the customers to see and hear the same message This could be achieved onl

y if the different marketing communication tools support each-other

As we all know the company of Samsung owns more than $117 billion revenue in 20

11 with global technology (wwwsamsungcom) so much evidence about the integrati

on of the different communication tools could be found First the logo and the key me

ssages are globally standardized The Galaxy S tablet message is similar ndash ldquofreedomrdquo

17 25

ldquolive without limitsrdquo Other similar messages related to the feeling of being free are al

so attached to Galaxy S tablet worldwide

There is also a powerful integration between the different marketing communication t

ools and media For example integration between traditional and online media In ma

ny countries all sales promotions are integrated with direct marketing ndash customers are

required to provide their basic details and e-mails Social media is also very well integ

rated with sales promotions Print adverts are also integrated with sales promotion and

direct to the Samsung website

In an company such as Samsung the main thing creating difficulties is its size It is dif

ficult to co-ordinate the marketing activities in a company with nearly 160 000 emplo

yees Samsung has several official websites ndash the main site (Samsungcom) a site dev

oted only to mobile phone users in specific countries This could lead to confusion for

the customer and currently Samsung is merging these local sites with its global websit

e

18 25

References

Wall Street Journal (2009) Motorola Executive Helped spur Cellphone Revolution

Wall Street Journal 20ndash21 June 2009 p A10

Funk J 2001 The mobile Internet How Japan dialed up and the West disconnected

Pembroke Bermuda ISI Publications

19 25

Apple 2010 ldquoiPhone Developer Program License Agreementrdquo

httpwwwefforgfiles20100302_iphone_dev_agrpdf

Cusumano Michael 2010 ldquoTechnology Strategy and Management The Evolution of

Platform Thinkingrdquo Communications of the ACM 53 (1) 32-34

Martinez Salazar and Marco Martinez 2010 ldquoThe Mobile Phone User Identifying

Top Mobile Applicationsrdquo (April 1 2010) Available at SSRN

httpssrncomabstract=1691210

P Kotler (1980) Marketing Management 3th Edition Published by Prentice

Kotler P Armstrong G Saunders J And Wong V (1999) Principles of Marketing

2nd European edn Pretice- Hall

Denis Adcock Al Halborg and Caroline Ross(2001) Marketing Principles and

Practice 4th edn published by FT Prentice Hall

C Fill (2009) Marketing communications 5th edition Pearson Education

P Kotler (2009) Marketing Management European edition FT Prentice Hall

20 25

Ries A and trout J (1981) Positioning the Battle for Your Mind McGraw- Hall

David Jobber (2006) Principles and Practice of Marketing 6th edn published by

McGraw-Hill

Anderson PH 2001 Relationship development and marketing communication An

integrative model The Journal of Business and Industrial

Pickton D amp Hartley B (1998) Measuring integration an assessment of the quality

of integrated marketing communications International Journal of Advertising

D Schultz amp C Patti (2009) The evolution of IMC IMC in a customer-driven

marketplace Journal of Marketing Communications Vol 15 Nos 2ndash3 AprilndashJuly

2009 pp 75ndash84

L Percy (2008) Strategic integrated marketing communication theory and practice

Butterworth Heinemann

F Brassington amp S Pettitt (2007) Essentials of Marketing second edn FT Prentice

Hall

Spreng RA and Mackoy RD (1996) An empirical examination of a model of

21 25

perceived service quality and satisfaction Journal of Retailing Vol 72 pp 201-14

Shemwell DJ Yavas U and Bilgin Z 11130881998) ``Customer-service provider

relationships an empirical test of a model of service quality satisfaction and

relationship oriented outcome International Journal of Service Industry

Management Vol 9 pp 155-68

Newman K and Pyne T (1996) Quality matters junior doctorsrsquo perceptions

Journal of Management in Medicine Vol 10 No 4 pp 12-23

Morrison J(2006) The International Business Environment 2nd edition Published

by Palgrave MacMillan

Baker J (2007) Marketing strategy and management Publisher Palgrave Macmillan

Blythe J (2006) Marketing Published by SAGE

Egan J (2007) Marketing communications Published by Thomson Learning

Finne amp Gronroos (2009) ldquoRethinking marketing communication From integrated

marketing communication to relationship communicationrdquo Journal of Marketing

Communications Vol 15 Nos 2ndash3 AprilndashJuly 2009 179ndash195

22 25

Kotler P et al (2005) Principles of marketing 4th edition Publisher Pearson

Education

London Butterworth-Heinemann

Kotler P (2003) Marketing management 11th edition Publisher Pearson Education

Kim I Han D amp Schultz D (2004) ldquoUnderstanding the Diffusion of Integrated

Marketing Communicationsrdquo Journal of Advertising Research March 2004 pp 31-45

Kitchen P amp Schultz D (2009) ldquoIMC New horizonfalse dawn for a marketplace in

turmoilrdquo Journal of Marketing Communications Vol 15 Nos 2ndash3 AprilndashJuly

2009 197ndash204

Pickton D amp Broderick A (2005) Integrated Marketing Communications 2nd edition

Publisher Pearson Education

Russell E The fundamentals of marketing Publisher AVA Academia

httpnewscnetcom

23 25

httpwwwecirclecom

httpwwwyoutubecom

httpchroniclingamericalocgovlccnsn850424621906-05-21ed-1seq-7

httpwwwmsnbcmsncomid7432915nstechnology_and_science-wirelesstfirst-

cell-phone-true-brickT2o-y3mP5JE

httpwwwumtsworldcomumtshistoryhtm

Mobile market httpwwwgartnercomitpagejspid=1455314

httpwwwsamsungcom

24 25

  1. Widget PGBM 15 Marketing Management
Page 13: PGBM 15 Marketing Management

With the systematic planning and effective implementation of relevant marketing

techniques marketers can ensure the products or service being successful in the

market

4 Marketing of Samsung

Samsung is one of the largest technology companies in the world founded in 1938 It

has almost 16000 employees in the world and its revenue for exceeds $117 billion in

2009 In the world most countries have Samsung Company Its headquarters are

located in Seoul South Korea Samsung has a big range of home appliances and

consumer electronics The company famous products in the world are TV ldquoGalaxyrdquo

tablet and mobile phones Now Samsung is the biggest mobile phones company in

the world

41 Marketing mix at Samsung

For the definition of marketing communications so far there is still no strict standard

According to Fill (2009) he declares that marketing communications is ldquoa manageme

nt process in which an organization engages with its various audiencesrdquo This include

s various kinds of activities From the view of Egan (2002) he thinks that marketing c

ommunications are ldquothe methods by which the suppliers who provide the goods value

s andor ideas services shows themselves to their target audiences aiming to stimulate

12 25

the dialogue successfully and form a better commercial or other relationshipsrdquo In oth

er words marketing communications are those things which can be transmitted from t

he company to the target audience Fill (2009) once says that there are four major func

tions ndash to differentiate to reinforce to inform and to persuade Selecting the first lette

rs of these four functions we can get DRIP Marketing communications are part of the

marketing mix which consists of Price Place Product and Promotion or the four Ps

According to Fill (2009) they consist of tools media and messages

42 Samsungrsquos message

Message can be defined as a set of symbols words and visual material (pictures

photos) that is sent to the target audience The company (in this case Samsung) could

be a sender as well as its brand name or someone who is advertising their products

(football players celebrities etc) (Kotler 2005) Kotler also argues that a message is

said to be good if it is easy to be understood by the target audience

Samsungrsquos brand main point is ldquoturn on tomorrowrdquo but sometime the company

develop is not follow its brand It stresses on the innovativeness of the companyrsquos

products The old message was ldquoeveryonersquos invitedrdquo but now the company does not

use the old message anymore The company has divided its messages to the target

audience in terms of the product range The main message that is attached to

13 25

Samsungrsquos new Galaxy tablets is ldquoLife without limitsrdquo All other messages regarding

this product range are related to the freedom that they provide In the USA the

message is ldquofeel free to Tabrdquo On the Samsungrsquos YouTube page one can see the same

messages

Samsungrsquos messages are emotional rather than rational That because the nature of the

Samsungrsquos products But there is a little of rational messages like ldquofeaturing a 7rdquo

screenrdquo which are necessary to show the product what the different between other

competitors I think that this type of messages is appropriate to be used If just use

emotional messages the customers may not know what exactly makes Samsungrsquos

products different than the others

43 Advertising at Samsung

Advertising is defined as ldquoany paid form of non-personal communication about an

organization product service or idea by an identified sponsorrdquo Belch amp Belch

(2002) When using advertising the message is normally transmitted via mass media ndash

TV radio newspapers etc A strong feature of advertising is that is can reach many

people sometimes even millions at the same time This is why it is used by large

companies (like Samsung) which aim to reach the mass market The company has

good control over the message and its design but there are almost no opportunities for

14 25

a feedback from the target audience Blythe (2006) argues that advertising has lower

credibility compared to the other marketing communication tools Therefore there is

no warranty that advertising will make the customers to buy the particular product or

service But it is an excellent tool for informing the target audience It is the most

expensive tool but has lowest price per customer reached Companies still spend

millions on advertising each year

Samsungrsquos advertisements are mainly emotional stressing the freedom that the

products provide but have a rational element stressing on their functionality Same

product carries the same type of information but stresses on the innovative technical

features (Google Maps with voice search etc) which explain why it is alleged to be

ldquothe best Android based smartphone in the worldrdquo

44 Sales promotion at Samsung

Belch amp Belch (2002) define sales promotion as ldquothose marketing activities that

provide extra value or incentives to the sales force the distributors or the ultimate

consumer and can stimulate immediate salesrdquo They key word here is ldquoimmediaterdquo

customers are inclined to act here and now Sales promotionsrsquo aim is to achieve short-

term increase in sales Baker (2007) argues that their credibility is at medium level

and the message is well controlled It is important for the sales promotion to continue

15 25

for a short period of time If it continues too long the customers may assume the

discounted price as a normal one and to postpone their buying decision until next

promotion

You can find all Samsung promotions on their website The customer can change the

country of residence to see the local promotions But the sites are different Due to

nature of the products the vast majority of sales promotions are of a lottery type where

there a big prize is won In my opinion the company uses this way not because to

increase its short-term sales but to increase the brand awareness and increase new

subscribers that who e-mail addresses will be used for direct marketing purposes

45 Social media at Samsung

Social media is a new phenomenon it develops speed very fast and more and more

important for the companyrsquos marketing communication The most powerful feature of

social networking is that it allows the customers and the company to into a dialogue

Word-of-Mouth that is spread around the social networks is another advantage

Samsung uses social media for both engaging with its customers and advertising It

has several Facebook pages divided by country and by product Galaxy product range

has fan pages but other products do not Similarly Samsung has fan pages in many

countries In my opinion Samsung still have many things can do by social media

16 25

5 Conclusion

Over the years all kinds of organisations have been undertaking varies of marketing

activities in order to increase their competitiveness in the market which allows them

to sustain their market shares and achieve organisational goals in the business world

Along with the development of mobile phone internet and personal computing

devices a new internet world emerges ie mobile internet In light of this there is a

new name for mobile phones that can effectively access to the internet ie

Smartphone

About the definition of IMC still no common agreement exist (Kim et al 2004) Som

e scholars think that IMC is a new concept while for others they support that the idea

of IMC is not new but just a more efficient way to manage the marketing communicat

ion tools (Kitchen amp Schultz 2009) In order to convey the messages clearly it is nec

essary for the customers to see and hear the same message This could be achieved onl

y if the different marketing communication tools support each-other

As we all know the company of Samsung owns more than $117 billion revenue in 20

11 with global technology (wwwsamsungcom) so much evidence about the integrati

on of the different communication tools could be found First the logo and the key me

ssages are globally standardized The Galaxy S tablet message is similar ndash ldquofreedomrdquo

17 25

ldquolive without limitsrdquo Other similar messages related to the feeling of being free are al

so attached to Galaxy S tablet worldwide

There is also a powerful integration between the different marketing communication t

ools and media For example integration between traditional and online media In ma

ny countries all sales promotions are integrated with direct marketing ndash customers are

required to provide their basic details and e-mails Social media is also very well integ

rated with sales promotions Print adverts are also integrated with sales promotion and

direct to the Samsung website

In an company such as Samsung the main thing creating difficulties is its size It is dif

ficult to co-ordinate the marketing activities in a company with nearly 160 000 emplo

yees Samsung has several official websites ndash the main site (Samsungcom) a site dev

oted only to mobile phone users in specific countries This could lead to confusion for

the customer and currently Samsung is merging these local sites with its global websit

e

18 25

References

Wall Street Journal (2009) Motorola Executive Helped spur Cellphone Revolution

Wall Street Journal 20ndash21 June 2009 p A10

Funk J 2001 The mobile Internet How Japan dialed up and the West disconnected

Pembroke Bermuda ISI Publications

19 25

Apple 2010 ldquoiPhone Developer Program License Agreementrdquo

httpwwwefforgfiles20100302_iphone_dev_agrpdf

Cusumano Michael 2010 ldquoTechnology Strategy and Management The Evolution of

Platform Thinkingrdquo Communications of the ACM 53 (1) 32-34

Martinez Salazar and Marco Martinez 2010 ldquoThe Mobile Phone User Identifying

Top Mobile Applicationsrdquo (April 1 2010) Available at SSRN

httpssrncomabstract=1691210

P Kotler (1980) Marketing Management 3th Edition Published by Prentice

Kotler P Armstrong G Saunders J And Wong V (1999) Principles of Marketing

2nd European edn Pretice- Hall

Denis Adcock Al Halborg and Caroline Ross(2001) Marketing Principles and

Practice 4th edn published by FT Prentice Hall

C Fill (2009) Marketing communications 5th edition Pearson Education

P Kotler (2009) Marketing Management European edition FT Prentice Hall

20 25

Ries A and trout J (1981) Positioning the Battle for Your Mind McGraw- Hall

David Jobber (2006) Principles and Practice of Marketing 6th edn published by

McGraw-Hill

Anderson PH 2001 Relationship development and marketing communication An

integrative model The Journal of Business and Industrial

Pickton D amp Hartley B (1998) Measuring integration an assessment of the quality

of integrated marketing communications International Journal of Advertising

D Schultz amp C Patti (2009) The evolution of IMC IMC in a customer-driven

marketplace Journal of Marketing Communications Vol 15 Nos 2ndash3 AprilndashJuly

2009 pp 75ndash84

L Percy (2008) Strategic integrated marketing communication theory and practice

Butterworth Heinemann

F Brassington amp S Pettitt (2007) Essentials of Marketing second edn FT Prentice

Hall

Spreng RA and Mackoy RD (1996) An empirical examination of a model of

21 25

perceived service quality and satisfaction Journal of Retailing Vol 72 pp 201-14

Shemwell DJ Yavas U and Bilgin Z 11130881998) ``Customer-service provider

relationships an empirical test of a model of service quality satisfaction and

relationship oriented outcome International Journal of Service Industry

Management Vol 9 pp 155-68

Newman K and Pyne T (1996) Quality matters junior doctorsrsquo perceptions

Journal of Management in Medicine Vol 10 No 4 pp 12-23

Morrison J(2006) The International Business Environment 2nd edition Published

by Palgrave MacMillan

Baker J (2007) Marketing strategy and management Publisher Palgrave Macmillan

Blythe J (2006) Marketing Published by SAGE

Egan J (2007) Marketing communications Published by Thomson Learning

Finne amp Gronroos (2009) ldquoRethinking marketing communication From integrated

marketing communication to relationship communicationrdquo Journal of Marketing

Communications Vol 15 Nos 2ndash3 AprilndashJuly 2009 179ndash195

22 25

Kotler P et al (2005) Principles of marketing 4th edition Publisher Pearson

Education

London Butterworth-Heinemann

Kotler P (2003) Marketing management 11th edition Publisher Pearson Education

Kim I Han D amp Schultz D (2004) ldquoUnderstanding the Diffusion of Integrated

Marketing Communicationsrdquo Journal of Advertising Research March 2004 pp 31-45

Kitchen P amp Schultz D (2009) ldquoIMC New horizonfalse dawn for a marketplace in

turmoilrdquo Journal of Marketing Communications Vol 15 Nos 2ndash3 AprilndashJuly

2009 197ndash204

Pickton D amp Broderick A (2005) Integrated Marketing Communications 2nd edition

Publisher Pearson Education

Russell E The fundamentals of marketing Publisher AVA Academia

httpnewscnetcom

23 25

httpwwwecirclecom

httpwwwyoutubecom

httpchroniclingamericalocgovlccnsn850424621906-05-21ed-1seq-7

httpwwwmsnbcmsncomid7432915nstechnology_and_science-wirelesstfirst-

cell-phone-true-brickT2o-y3mP5JE

httpwwwumtsworldcomumtshistoryhtm

Mobile market httpwwwgartnercomitpagejspid=1455314

httpwwwsamsungcom

24 25

  1. Widget PGBM 15 Marketing Management
Page 14: PGBM 15 Marketing Management

the dialogue successfully and form a better commercial or other relationshipsrdquo In oth

er words marketing communications are those things which can be transmitted from t

he company to the target audience Fill (2009) once says that there are four major func

tions ndash to differentiate to reinforce to inform and to persuade Selecting the first lette

rs of these four functions we can get DRIP Marketing communications are part of the

marketing mix which consists of Price Place Product and Promotion or the four Ps

According to Fill (2009) they consist of tools media and messages

42 Samsungrsquos message

Message can be defined as a set of symbols words and visual material (pictures

photos) that is sent to the target audience The company (in this case Samsung) could

be a sender as well as its brand name or someone who is advertising their products

(football players celebrities etc) (Kotler 2005) Kotler also argues that a message is

said to be good if it is easy to be understood by the target audience

Samsungrsquos brand main point is ldquoturn on tomorrowrdquo but sometime the company

develop is not follow its brand It stresses on the innovativeness of the companyrsquos

products The old message was ldquoeveryonersquos invitedrdquo but now the company does not

use the old message anymore The company has divided its messages to the target

audience in terms of the product range The main message that is attached to

13 25

Samsungrsquos new Galaxy tablets is ldquoLife without limitsrdquo All other messages regarding

this product range are related to the freedom that they provide In the USA the

message is ldquofeel free to Tabrdquo On the Samsungrsquos YouTube page one can see the same

messages

Samsungrsquos messages are emotional rather than rational That because the nature of the

Samsungrsquos products But there is a little of rational messages like ldquofeaturing a 7rdquo

screenrdquo which are necessary to show the product what the different between other

competitors I think that this type of messages is appropriate to be used If just use

emotional messages the customers may not know what exactly makes Samsungrsquos

products different than the others

43 Advertising at Samsung

Advertising is defined as ldquoany paid form of non-personal communication about an

organization product service or idea by an identified sponsorrdquo Belch amp Belch

(2002) When using advertising the message is normally transmitted via mass media ndash

TV radio newspapers etc A strong feature of advertising is that is can reach many

people sometimes even millions at the same time This is why it is used by large

companies (like Samsung) which aim to reach the mass market The company has

good control over the message and its design but there are almost no opportunities for

14 25

a feedback from the target audience Blythe (2006) argues that advertising has lower

credibility compared to the other marketing communication tools Therefore there is

no warranty that advertising will make the customers to buy the particular product or

service But it is an excellent tool for informing the target audience It is the most

expensive tool but has lowest price per customer reached Companies still spend

millions on advertising each year

Samsungrsquos advertisements are mainly emotional stressing the freedom that the

products provide but have a rational element stressing on their functionality Same

product carries the same type of information but stresses on the innovative technical

features (Google Maps with voice search etc) which explain why it is alleged to be

ldquothe best Android based smartphone in the worldrdquo

44 Sales promotion at Samsung

Belch amp Belch (2002) define sales promotion as ldquothose marketing activities that

provide extra value or incentives to the sales force the distributors or the ultimate

consumer and can stimulate immediate salesrdquo They key word here is ldquoimmediaterdquo

customers are inclined to act here and now Sales promotionsrsquo aim is to achieve short-

term increase in sales Baker (2007) argues that their credibility is at medium level

and the message is well controlled It is important for the sales promotion to continue

15 25

for a short period of time If it continues too long the customers may assume the

discounted price as a normal one and to postpone their buying decision until next

promotion

You can find all Samsung promotions on their website The customer can change the

country of residence to see the local promotions But the sites are different Due to

nature of the products the vast majority of sales promotions are of a lottery type where

there a big prize is won In my opinion the company uses this way not because to

increase its short-term sales but to increase the brand awareness and increase new

subscribers that who e-mail addresses will be used for direct marketing purposes

45 Social media at Samsung

Social media is a new phenomenon it develops speed very fast and more and more

important for the companyrsquos marketing communication The most powerful feature of

social networking is that it allows the customers and the company to into a dialogue

Word-of-Mouth that is spread around the social networks is another advantage

Samsung uses social media for both engaging with its customers and advertising It

has several Facebook pages divided by country and by product Galaxy product range

has fan pages but other products do not Similarly Samsung has fan pages in many

countries In my opinion Samsung still have many things can do by social media

16 25

5 Conclusion

Over the years all kinds of organisations have been undertaking varies of marketing

activities in order to increase their competitiveness in the market which allows them

to sustain their market shares and achieve organisational goals in the business world

Along with the development of mobile phone internet and personal computing

devices a new internet world emerges ie mobile internet In light of this there is a

new name for mobile phones that can effectively access to the internet ie

Smartphone

About the definition of IMC still no common agreement exist (Kim et al 2004) Som

e scholars think that IMC is a new concept while for others they support that the idea

of IMC is not new but just a more efficient way to manage the marketing communicat

ion tools (Kitchen amp Schultz 2009) In order to convey the messages clearly it is nec

essary for the customers to see and hear the same message This could be achieved onl

y if the different marketing communication tools support each-other

As we all know the company of Samsung owns more than $117 billion revenue in 20

11 with global technology (wwwsamsungcom) so much evidence about the integrati

on of the different communication tools could be found First the logo and the key me

ssages are globally standardized The Galaxy S tablet message is similar ndash ldquofreedomrdquo

17 25

ldquolive without limitsrdquo Other similar messages related to the feeling of being free are al

so attached to Galaxy S tablet worldwide

There is also a powerful integration between the different marketing communication t

ools and media For example integration between traditional and online media In ma

ny countries all sales promotions are integrated with direct marketing ndash customers are

required to provide their basic details and e-mails Social media is also very well integ

rated with sales promotions Print adverts are also integrated with sales promotion and

direct to the Samsung website

In an company such as Samsung the main thing creating difficulties is its size It is dif

ficult to co-ordinate the marketing activities in a company with nearly 160 000 emplo

yees Samsung has several official websites ndash the main site (Samsungcom) a site dev

oted only to mobile phone users in specific countries This could lead to confusion for

the customer and currently Samsung is merging these local sites with its global websit

e

18 25

References

Wall Street Journal (2009) Motorola Executive Helped spur Cellphone Revolution

Wall Street Journal 20ndash21 June 2009 p A10

Funk J 2001 The mobile Internet How Japan dialed up and the West disconnected

Pembroke Bermuda ISI Publications

19 25

Apple 2010 ldquoiPhone Developer Program License Agreementrdquo

httpwwwefforgfiles20100302_iphone_dev_agrpdf

Cusumano Michael 2010 ldquoTechnology Strategy and Management The Evolution of

Platform Thinkingrdquo Communications of the ACM 53 (1) 32-34

Martinez Salazar and Marco Martinez 2010 ldquoThe Mobile Phone User Identifying

Top Mobile Applicationsrdquo (April 1 2010) Available at SSRN

httpssrncomabstract=1691210

P Kotler (1980) Marketing Management 3th Edition Published by Prentice

Kotler P Armstrong G Saunders J And Wong V (1999) Principles of Marketing

2nd European edn Pretice- Hall

Denis Adcock Al Halborg and Caroline Ross(2001) Marketing Principles and

Practice 4th edn published by FT Prentice Hall

C Fill (2009) Marketing communications 5th edition Pearson Education

P Kotler (2009) Marketing Management European edition FT Prentice Hall

20 25

Ries A and trout J (1981) Positioning the Battle for Your Mind McGraw- Hall

David Jobber (2006) Principles and Practice of Marketing 6th edn published by

McGraw-Hill

Anderson PH 2001 Relationship development and marketing communication An

integrative model The Journal of Business and Industrial

Pickton D amp Hartley B (1998) Measuring integration an assessment of the quality

of integrated marketing communications International Journal of Advertising

D Schultz amp C Patti (2009) The evolution of IMC IMC in a customer-driven

marketplace Journal of Marketing Communications Vol 15 Nos 2ndash3 AprilndashJuly

2009 pp 75ndash84

L Percy (2008) Strategic integrated marketing communication theory and practice

Butterworth Heinemann

F Brassington amp S Pettitt (2007) Essentials of Marketing second edn FT Prentice

Hall

Spreng RA and Mackoy RD (1996) An empirical examination of a model of

21 25

perceived service quality and satisfaction Journal of Retailing Vol 72 pp 201-14

Shemwell DJ Yavas U and Bilgin Z 11130881998) ``Customer-service provider

relationships an empirical test of a model of service quality satisfaction and

relationship oriented outcome International Journal of Service Industry

Management Vol 9 pp 155-68

Newman K and Pyne T (1996) Quality matters junior doctorsrsquo perceptions

Journal of Management in Medicine Vol 10 No 4 pp 12-23

Morrison J(2006) The International Business Environment 2nd edition Published

by Palgrave MacMillan

Baker J (2007) Marketing strategy and management Publisher Palgrave Macmillan

Blythe J (2006) Marketing Published by SAGE

Egan J (2007) Marketing communications Published by Thomson Learning

Finne amp Gronroos (2009) ldquoRethinking marketing communication From integrated

marketing communication to relationship communicationrdquo Journal of Marketing

Communications Vol 15 Nos 2ndash3 AprilndashJuly 2009 179ndash195

22 25

Kotler P et al (2005) Principles of marketing 4th edition Publisher Pearson

Education

London Butterworth-Heinemann

Kotler P (2003) Marketing management 11th edition Publisher Pearson Education

Kim I Han D amp Schultz D (2004) ldquoUnderstanding the Diffusion of Integrated

Marketing Communicationsrdquo Journal of Advertising Research March 2004 pp 31-45

Kitchen P amp Schultz D (2009) ldquoIMC New horizonfalse dawn for a marketplace in

turmoilrdquo Journal of Marketing Communications Vol 15 Nos 2ndash3 AprilndashJuly

2009 197ndash204

Pickton D amp Broderick A (2005) Integrated Marketing Communications 2nd edition

Publisher Pearson Education

Russell E The fundamentals of marketing Publisher AVA Academia

httpnewscnetcom

23 25

httpwwwecirclecom

httpwwwyoutubecom

httpchroniclingamericalocgovlccnsn850424621906-05-21ed-1seq-7

httpwwwmsnbcmsncomid7432915nstechnology_and_science-wirelesstfirst-

cell-phone-true-brickT2o-y3mP5JE

httpwwwumtsworldcomumtshistoryhtm

Mobile market httpwwwgartnercomitpagejspid=1455314

httpwwwsamsungcom

24 25

  1. Widget PGBM 15 Marketing Management
Page 15: PGBM 15 Marketing Management

Samsungrsquos new Galaxy tablets is ldquoLife without limitsrdquo All other messages regarding

this product range are related to the freedom that they provide In the USA the

message is ldquofeel free to Tabrdquo On the Samsungrsquos YouTube page one can see the same

messages

Samsungrsquos messages are emotional rather than rational That because the nature of the

Samsungrsquos products But there is a little of rational messages like ldquofeaturing a 7rdquo

screenrdquo which are necessary to show the product what the different between other

competitors I think that this type of messages is appropriate to be used If just use

emotional messages the customers may not know what exactly makes Samsungrsquos

products different than the others

43 Advertising at Samsung

Advertising is defined as ldquoany paid form of non-personal communication about an

organization product service or idea by an identified sponsorrdquo Belch amp Belch

(2002) When using advertising the message is normally transmitted via mass media ndash

TV radio newspapers etc A strong feature of advertising is that is can reach many

people sometimes even millions at the same time This is why it is used by large

companies (like Samsung) which aim to reach the mass market The company has

good control over the message and its design but there are almost no opportunities for

14 25

a feedback from the target audience Blythe (2006) argues that advertising has lower

credibility compared to the other marketing communication tools Therefore there is

no warranty that advertising will make the customers to buy the particular product or

service But it is an excellent tool for informing the target audience It is the most

expensive tool but has lowest price per customer reached Companies still spend

millions on advertising each year

Samsungrsquos advertisements are mainly emotional stressing the freedom that the

products provide but have a rational element stressing on their functionality Same

product carries the same type of information but stresses on the innovative technical

features (Google Maps with voice search etc) which explain why it is alleged to be

ldquothe best Android based smartphone in the worldrdquo

44 Sales promotion at Samsung

Belch amp Belch (2002) define sales promotion as ldquothose marketing activities that

provide extra value or incentives to the sales force the distributors or the ultimate

consumer and can stimulate immediate salesrdquo They key word here is ldquoimmediaterdquo

customers are inclined to act here and now Sales promotionsrsquo aim is to achieve short-

term increase in sales Baker (2007) argues that their credibility is at medium level

and the message is well controlled It is important for the sales promotion to continue

15 25

for a short period of time If it continues too long the customers may assume the

discounted price as a normal one and to postpone their buying decision until next

promotion

You can find all Samsung promotions on their website The customer can change the

country of residence to see the local promotions But the sites are different Due to

nature of the products the vast majority of sales promotions are of a lottery type where

there a big prize is won In my opinion the company uses this way not because to

increase its short-term sales but to increase the brand awareness and increase new

subscribers that who e-mail addresses will be used for direct marketing purposes

45 Social media at Samsung

Social media is a new phenomenon it develops speed very fast and more and more

important for the companyrsquos marketing communication The most powerful feature of

social networking is that it allows the customers and the company to into a dialogue

Word-of-Mouth that is spread around the social networks is another advantage

Samsung uses social media for both engaging with its customers and advertising It

has several Facebook pages divided by country and by product Galaxy product range

has fan pages but other products do not Similarly Samsung has fan pages in many

countries In my opinion Samsung still have many things can do by social media

16 25

5 Conclusion

Over the years all kinds of organisations have been undertaking varies of marketing

activities in order to increase their competitiveness in the market which allows them

to sustain their market shares and achieve organisational goals in the business world

Along with the development of mobile phone internet and personal computing

devices a new internet world emerges ie mobile internet In light of this there is a

new name for mobile phones that can effectively access to the internet ie

Smartphone

About the definition of IMC still no common agreement exist (Kim et al 2004) Som

e scholars think that IMC is a new concept while for others they support that the idea

of IMC is not new but just a more efficient way to manage the marketing communicat

ion tools (Kitchen amp Schultz 2009) In order to convey the messages clearly it is nec

essary for the customers to see and hear the same message This could be achieved onl

y if the different marketing communication tools support each-other

As we all know the company of Samsung owns more than $117 billion revenue in 20

11 with global technology (wwwsamsungcom) so much evidence about the integrati

on of the different communication tools could be found First the logo and the key me

ssages are globally standardized The Galaxy S tablet message is similar ndash ldquofreedomrdquo

17 25

ldquolive without limitsrdquo Other similar messages related to the feeling of being free are al

so attached to Galaxy S tablet worldwide

There is also a powerful integration between the different marketing communication t

ools and media For example integration between traditional and online media In ma

ny countries all sales promotions are integrated with direct marketing ndash customers are

required to provide their basic details and e-mails Social media is also very well integ

rated with sales promotions Print adverts are also integrated with sales promotion and

direct to the Samsung website

In an company such as Samsung the main thing creating difficulties is its size It is dif

ficult to co-ordinate the marketing activities in a company with nearly 160 000 emplo

yees Samsung has several official websites ndash the main site (Samsungcom) a site dev

oted only to mobile phone users in specific countries This could lead to confusion for

the customer and currently Samsung is merging these local sites with its global websit

e

18 25

References

Wall Street Journal (2009) Motorola Executive Helped spur Cellphone Revolution

Wall Street Journal 20ndash21 June 2009 p A10

Funk J 2001 The mobile Internet How Japan dialed up and the West disconnected

Pembroke Bermuda ISI Publications

19 25

Apple 2010 ldquoiPhone Developer Program License Agreementrdquo

httpwwwefforgfiles20100302_iphone_dev_agrpdf

Cusumano Michael 2010 ldquoTechnology Strategy and Management The Evolution of

Platform Thinkingrdquo Communications of the ACM 53 (1) 32-34

Martinez Salazar and Marco Martinez 2010 ldquoThe Mobile Phone User Identifying

Top Mobile Applicationsrdquo (April 1 2010) Available at SSRN

httpssrncomabstract=1691210

P Kotler (1980) Marketing Management 3th Edition Published by Prentice

Kotler P Armstrong G Saunders J And Wong V (1999) Principles of Marketing

2nd European edn Pretice- Hall

Denis Adcock Al Halborg and Caroline Ross(2001) Marketing Principles and

Practice 4th edn published by FT Prentice Hall

C Fill (2009) Marketing communications 5th edition Pearson Education

P Kotler (2009) Marketing Management European edition FT Prentice Hall

20 25

Ries A and trout J (1981) Positioning the Battle for Your Mind McGraw- Hall

David Jobber (2006) Principles and Practice of Marketing 6th edn published by

McGraw-Hill

Anderson PH 2001 Relationship development and marketing communication An

integrative model The Journal of Business and Industrial

Pickton D amp Hartley B (1998) Measuring integration an assessment of the quality

of integrated marketing communications International Journal of Advertising

D Schultz amp C Patti (2009) The evolution of IMC IMC in a customer-driven

marketplace Journal of Marketing Communications Vol 15 Nos 2ndash3 AprilndashJuly

2009 pp 75ndash84

L Percy (2008) Strategic integrated marketing communication theory and practice

Butterworth Heinemann

F Brassington amp S Pettitt (2007) Essentials of Marketing second edn FT Prentice

Hall

Spreng RA and Mackoy RD (1996) An empirical examination of a model of

21 25

perceived service quality and satisfaction Journal of Retailing Vol 72 pp 201-14

Shemwell DJ Yavas U and Bilgin Z 11130881998) ``Customer-service provider

relationships an empirical test of a model of service quality satisfaction and

relationship oriented outcome International Journal of Service Industry

Management Vol 9 pp 155-68

Newman K and Pyne T (1996) Quality matters junior doctorsrsquo perceptions

Journal of Management in Medicine Vol 10 No 4 pp 12-23

Morrison J(2006) The International Business Environment 2nd edition Published

by Palgrave MacMillan

Baker J (2007) Marketing strategy and management Publisher Palgrave Macmillan

Blythe J (2006) Marketing Published by SAGE

Egan J (2007) Marketing communications Published by Thomson Learning

Finne amp Gronroos (2009) ldquoRethinking marketing communication From integrated

marketing communication to relationship communicationrdquo Journal of Marketing

Communications Vol 15 Nos 2ndash3 AprilndashJuly 2009 179ndash195

22 25

Kotler P et al (2005) Principles of marketing 4th edition Publisher Pearson

Education

London Butterworth-Heinemann

Kotler P (2003) Marketing management 11th edition Publisher Pearson Education

Kim I Han D amp Schultz D (2004) ldquoUnderstanding the Diffusion of Integrated

Marketing Communicationsrdquo Journal of Advertising Research March 2004 pp 31-45

Kitchen P amp Schultz D (2009) ldquoIMC New horizonfalse dawn for a marketplace in

turmoilrdquo Journal of Marketing Communications Vol 15 Nos 2ndash3 AprilndashJuly

2009 197ndash204

Pickton D amp Broderick A (2005) Integrated Marketing Communications 2nd edition

Publisher Pearson Education

Russell E The fundamentals of marketing Publisher AVA Academia

httpnewscnetcom

23 25

httpwwwecirclecom

httpwwwyoutubecom

httpchroniclingamericalocgovlccnsn850424621906-05-21ed-1seq-7

httpwwwmsnbcmsncomid7432915nstechnology_and_science-wirelesstfirst-

cell-phone-true-brickT2o-y3mP5JE

httpwwwumtsworldcomumtshistoryhtm

Mobile market httpwwwgartnercomitpagejspid=1455314

httpwwwsamsungcom

24 25

  1. Widget PGBM 15 Marketing Management
Page 16: PGBM 15 Marketing Management

a feedback from the target audience Blythe (2006) argues that advertising has lower

credibility compared to the other marketing communication tools Therefore there is

no warranty that advertising will make the customers to buy the particular product or

service But it is an excellent tool for informing the target audience It is the most

expensive tool but has lowest price per customer reached Companies still spend

millions on advertising each year

Samsungrsquos advertisements are mainly emotional stressing the freedom that the

products provide but have a rational element stressing on their functionality Same

product carries the same type of information but stresses on the innovative technical

features (Google Maps with voice search etc) which explain why it is alleged to be

ldquothe best Android based smartphone in the worldrdquo

44 Sales promotion at Samsung

Belch amp Belch (2002) define sales promotion as ldquothose marketing activities that

provide extra value or incentives to the sales force the distributors or the ultimate

consumer and can stimulate immediate salesrdquo They key word here is ldquoimmediaterdquo

customers are inclined to act here and now Sales promotionsrsquo aim is to achieve short-

term increase in sales Baker (2007) argues that their credibility is at medium level

and the message is well controlled It is important for the sales promotion to continue

15 25

for a short period of time If it continues too long the customers may assume the

discounted price as a normal one and to postpone their buying decision until next

promotion

You can find all Samsung promotions on their website The customer can change the

country of residence to see the local promotions But the sites are different Due to

nature of the products the vast majority of sales promotions are of a lottery type where

there a big prize is won In my opinion the company uses this way not because to

increase its short-term sales but to increase the brand awareness and increase new

subscribers that who e-mail addresses will be used for direct marketing purposes

45 Social media at Samsung

Social media is a new phenomenon it develops speed very fast and more and more

important for the companyrsquos marketing communication The most powerful feature of

social networking is that it allows the customers and the company to into a dialogue

Word-of-Mouth that is spread around the social networks is another advantage

Samsung uses social media for both engaging with its customers and advertising It

has several Facebook pages divided by country and by product Galaxy product range

has fan pages but other products do not Similarly Samsung has fan pages in many

countries In my opinion Samsung still have many things can do by social media

16 25

5 Conclusion

Over the years all kinds of organisations have been undertaking varies of marketing

activities in order to increase their competitiveness in the market which allows them

to sustain their market shares and achieve organisational goals in the business world

Along with the development of mobile phone internet and personal computing

devices a new internet world emerges ie mobile internet In light of this there is a

new name for mobile phones that can effectively access to the internet ie

Smartphone

About the definition of IMC still no common agreement exist (Kim et al 2004) Som

e scholars think that IMC is a new concept while for others they support that the idea

of IMC is not new but just a more efficient way to manage the marketing communicat

ion tools (Kitchen amp Schultz 2009) In order to convey the messages clearly it is nec

essary for the customers to see and hear the same message This could be achieved onl

y if the different marketing communication tools support each-other

As we all know the company of Samsung owns more than $117 billion revenue in 20

11 with global technology (wwwsamsungcom) so much evidence about the integrati

on of the different communication tools could be found First the logo and the key me

ssages are globally standardized The Galaxy S tablet message is similar ndash ldquofreedomrdquo

17 25

ldquolive without limitsrdquo Other similar messages related to the feeling of being free are al

so attached to Galaxy S tablet worldwide

There is also a powerful integration between the different marketing communication t

ools and media For example integration between traditional and online media In ma

ny countries all sales promotions are integrated with direct marketing ndash customers are

required to provide their basic details and e-mails Social media is also very well integ

rated with sales promotions Print adverts are also integrated with sales promotion and

direct to the Samsung website

In an company such as Samsung the main thing creating difficulties is its size It is dif

ficult to co-ordinate the marketing activities in a company with nearly 160 000 emplo

yees Samsung has several official websites ndash the main site (Samsungcom) a site dev

oted only to mobile phone users in specific countries This could lead to confusion for

the customer and currently Samsung is merging these local sites with its global websit

e

18 25

References

Wall Street Journal (2009) Motorola Executive Helped spur Cellphone Revolution

Wall Street Journal 20ndash21 June 2009 p A10

Funk J 2001 The mobile Internet How Japan dialed up and the West disconnected

Pembroke Bermuda ISI Publications

19 25

Apple 2010 ldquoiPhone Developer Program License Agreementrdquo

httpwwwefforgfiles20100302_iphone_dev_agrpdf

Cusumano Michael 2010 ldquoTechnology Strategy and Management The Evolution of

Platform Thinkingrdquo Communications of the ACM 53 (1) 32-34

Martinez Salazar and Marco Martinez 2010 ldquoThe Mobile Phone User Identifying

Top Mobile Applicationsrdquo (April 1 2010) Available at SSRN

httpssrncomabstract=1691210

P Kotler (1980) Marketing Management 3th Edition Published by Prentice

Kotler P Armstrong G Saunders J And Wong V (1999) Principles of Marketing

2nd European edn Pretice- Hall

Denis Adcock Al Halborg and Caroline Ross(2001) Marketing Principles and

Practice 4th edn published by FT Prentice Hall

C Fill (2009) Marketing communications 5th edition Pearson Education

P Kotler (2009) Marketing Management European edition FT Prentice Hall

20 25

Ries A and trout J (1981) Positioning the Battle for Your Mind McGraw- Hall

David Jobber (2006) Principles and Practice of Marketing 6th edn published by

McGraw-Hill

Anderson PH 2001 Relationship development and marketing communication An

integrative model The Journal of Business and Industrial

Pickton D amp Hartley B (1998) Measuring integration an assessment of the quality

of integrated marketing communications International Journal of Advertising

D Schultz amp C Patti (2009) The evolution of IMC IMC in a customer-driven

marketplace Journal of Marketing Communications Vol 15 Nos 2ndash3 AprilndashJuly

2009 pp 75ndash84

L Percy (2008) Strategic integrated marketing communication theory and practice

Butterworth Heinemann

F Brassington amp S Pettitt (2007) Essentials of Marketing second edn FT Prentice

Hall

Spreng RA and Mackoy RD (1996) An empirical examination of a model of

21 25

perceived service quality and satisfaction Journal of Retailing Vol 72 pp 201-14

Shemwell DJ Yavas U and Bilgin Z 11130881998) ``Customer-service provider

relationships an empirical test of a model of service quality satisfaction and

relationship oriented outcome International Journal of Service Industry

Management Vol 9 pp 155-68

Newman K and Pyne T (1996) Quality matters junior doctorsrsquo perceptions

Journal of Management in Medicine Vol 10 No 4 pp 12-23

Morrison J(2006) The International Business Environment 2nd edition Published

by Palgrave MacMillan

Baker J (2007) Marketing strategy and management Publisher Palgrave Macmillan

Blythe J (2006) Marketing Published by SAGE

Egan J (2007) Marketing communications Published by Thomson Learning

Finne amp Gronroos (2009) ldquoRethinking marketing communication From integrated

marketing communication to relationship communicationrdquo Journal of Marketing

Communications Vol 15 Nos 2ndash3 AprilndashJuly 2009 179ndash195

22 25

Kotler P et al (2005) Principles of marketing 4th edition Publisher Pearson

Education

London Butterworth-Heinemann

Kotler P (2003) Marketing management 11th edition Publisher Pearson Education

Kim I Han D amp Schultz D (2004) ldquoUnderstanding the Diffusion of Integrated

Marketing Communicationsrdquo Journal of Advertising Research March 2004 pp 31-45

Kitchen P amp Schultz D (2009) ldquoIMC New horizonfalse dawn for a marketplace in

turmoilrdquo Journal of Marketing Communications Vol 15 Nos 2ndash3 AprilndashJuly

2009 197ndash204

Pickton D amp Broderick A (2005) Integrated Marketing Communications 2nd edition

Publisher Pearson Education

Russell E The fundamentals of marketing Publisher AVA Academia

httpnewscnetcom

23 25

httpwwwecirclecom

httpwwwyoutubecom

httpchroniclingamericalocgovlccnsn850424621906-05-21ed-1seq-7

httpwwwmsnbcmsncomid7432915nstechnology_and_science-wirelesstfirst-

cell-phone-true-brickT2o-y3mP5JE

httpwwwumtsworldcomumtshistoryhtm

Mobile market httpwwwgartnercomitpagejspid=1455314

httpwwwsamsungcom

24 25

  1. Widget PGBM 15 Marketing Management
Page 17: PGBM 15 Marketing Management

for a short period of time If it continues too long the customers may assume the

discounted price as a normal one and to postpone their buying decision until next

promotion

You can find all Samsung promotions on their website The customer can change the

country of residence to see the local promotions But the sites are different Due to

nature of the products the vast majority of sales promotions are of a lottery type where

there a big prize is won In my opinion the company uses this way not because to

increase its short-term sales but to increase the brand awareness and increase new

subscribers that who e-mail addresses will be used for direct marketing purposes

45 Social media at Samsung

Social media is a new phenomenon it develops speed very fast and more and more

important for the companyrsquos marketing communication The most powerful feature of

social networking is that it allows the customers and the company to into a dialogue

Word-of-Mouth that is spread around the social networks is another advantage

Samsung uses social media for both engaging with its customers and advertising It

has several Facebook pages divided by country and by product Galaxy product range

has fan pages but other products do not Similarly Samsung has fan pages in many

countries In my opinion Samsung still have many things can do by social media

16 25

5 Conclusion

Over the years all kinds of organisations have been undertaking varies of marketing

activities in order to increase their competitiveness in the market which allows them

to sustain their market shares and achieve organisational goals in the business world

Along with the development of mobile phone internet and personal computing

devices a new internet world emerges ie mobile internet In light of this there is a

new name for mobile phones that can effectively access to the internet ie

Smartphone

About the definition of IMC still no common agreement exist (Kim et al 2004) Som

e scholars think that IMC is a new concept while for others they support that the idea

of IMC is not new but just a more efficient way to manage the marketing communicat

ion tools (Kitchen amp Schultz 2009) In order to convey the messages clearly it is nec

essary for the customers to see and hear the same message This could be achieved onl

y if the different marketing communication tools support each-other

As we all know the company of Samsung owns more than $117 billion revenue in 20

11 with global technology (wwwsamsungcom) so much evidence about the integrati

on of the different communication tools could be found First the logo and the key me

ssages are globally standardized The Galaxy S tablet message is similar ndash ldquofreedomrdquo

17 25

ldquolive without limitsrdquo Other similar messages related to the feeling of being free are al

so attached to Galaxy S tablet worldwide

There is also a powerful integration between the different marketing communication t

ools and media For example integration between traditional and online media In ma

ny countries all sales promotions are integrated with direct marketing ndash customers are

required to provide their basic details and e-mails Social media is also very well integ

rated with sales promotions Print adverts are also integrated with sales promotion and

direct to the Samsung website

In an company such as Samsung the main thing creating difficulties is its size It is dif

ficult to co-ordinate the marketing activities in a company with nearly 160 000 emplo

yees Samsung has several official websites ndash the main site (Samsungcom) a site dev

oted only to mobile phone users in specific countries This could lead to confusion for

the customer and currently Samsung is merging these local sites with its global websit

e

18 25

References

Wall Street Journal (2009) Motorola Executive Helped spur Cellphone Revolution

Wall Street Journal 20ndash21 June 2009 p A10

Funk J 2001 The mobile Internet How Japan dialed up and the West disconnected

Pembroke Bermuda ISI Publications

19 25

Apple 2010 ldquoiPhone Developer Program License Agreementrdquo

httpwwwefforgfiles20100302_iphone_dev_agrpdf

Cusumano Michael 2010 ldquoTechnology Strategy and Management The Evolution of

Platform Thinkingrdquo Communications of the ACM 53 (1) 32-34

Martinez Salazar and Marco Martinez 2010 ldquoThe Mobile Phone User Identifying

Top Mobile Applicationsrdquo (April 1 2010) Available at SSRN

httpssrncomabstract=1691210

P Kotler (1980) Marketing Management 3th Edition Published by Prentice

Kotler P Armstrong G Saunders J And Wong V (1999) Principles of Marketing

2nd European edn Pretice- Hall

Denis Adcock Al Halborg and Caroline Ross(2001) Marketing Principles and

Practice 4th edn published by FT Prentice Hall

C Fill (2009) Marketing communications 5th edition Pearson Education

P Kotler (2009) Marketing Management European edition FT Prentice Hall

20 25

Ries A and trout J (1981) Positioning the Battle for Your Mind McGraw- Hall

David Jobber (2006) Principles and Practice of Marketing 6th edn published by

McGraw-Hill

Anderson PH 2001 Relationship development and marketing communication An

integrative model The Journal of Business and Industrial

Pickton D amp Hartley B (1998) Measuring integration an assessment of the quality

of integrated marketing communications International Journal of Advertising

D Schultz amp C Patti (2009) The evolution of IMC IMC in a customer-driven

marketplace Journal of Marketing Communications Vol 15 Nos 2ndash3 AprilndashJuly

2009 pp 75ndash84

L Percy (2008) Strategic integrated marketing communication theory and practice

Butterworth Heinemann

F Brassington amp S Pettitt (2007) Essentials of Marketing second edn FT Prentice

Hall

Spreng RA and Mackoy RD (1996) An empirical examination of a model of

21 25

perceived service quality and satisfaction Journal of Retailing Vol 72 pp 201-14

Shemwell DJ Yavas U and Bilgin Z 11130881998) ``Customer-service provider

relationships an empirical test of a model of service quality satisfaction and

relationship oriented outcome International Journal of Service Industry

Management Vol 9 pp 155-68

Newman K and Pyne T (1996) Quality matters junior doctorsrsquo perceptions

Journal of Management in Medicine Vol 10 No 4 pp 12-23

Morrison J(2006) The International Business Environment 2nd edition Published

by Palgrave MacMillan

Baker J (2007) Marketing strategy and management Publisher Palgrave Macmillan

Blythe J (2006) Marketing Published by SAGE

Egan J (2007) Marketing communications Published by Thomson Learning

Finne amp Gronroos (2009) ldquoRethinking marketing communication From integrated

marketing communication to relationship communicationrdquo Journal of Marketing

Communications Vol 15 Nos 2ndash3 AprilndashJuly 2009 179ndash195

22 25

Kotler P et al (2005) Principles of marketing 4th edition Publisher Pearson

Education

London Butterworth-Heinemann

Kotler P (2003) Marketing management 11th edition Publisher Pearson Education

Kim I Han D amp Schultz D (2004) ldquoUnderstanding the Diffusion of Integrated

Marketing Communicationsrdquo Journal of Advertising Research March 2004 pp 31-45

Kitchen P amp Schultz D (2009) ldquoIMC New horizonfalse dawn for a marketplace in

turmoilrdquo Journal of Marketing Communications Vol 15 Nos 2ndash3 AprilndashJuly

2009 197ndash204

Pickton D amp Broderick A (2005) Integrated Marketing Communications 2nd edition

Publisher Pearson Education

Russell E The fundamentals of marketing Publisher AVA Academia

httpnewscnetcom

23 25

httpwwwecirclecom

httpwwwyoutubecom

httpchroniclingamericalocgovlccnsn850424621906-05-21ed-1seq-7

httpwwwmsnbcmsncomid7432915nstechnology_and_science-wirelesstfirst-

cell-phone-true-brickT2o-y3mP5JE

httpwwwumtsworldcomumtshistoryhtm

Mobile market httpwwwgartnercomitpagejspid=1455314

httpwwwsamsungcom

24 25

  1. Widget PGBM 15 Marketing Management
Page 18: PGBM 15 Marketing Management

5 Conclusion

Over the years all kinds of organisations have been undertaking varies of marketing

activities in order to increase their competitiveness in the market which allows them

to sustain their market shares and achieve organisational goals in the business world

Along with the development of mobile phone internet and personal computing

devices a new internet world emerges ie mobile internet In light of this there is a

new name for mobile phones that can effectively access to the internet ie

Smartphone

About the definition of IMC still no common agreement exist (Kim et al 2004) Som

e scholars think that IMC is a new concept while for others they support that the idea

of IMC is not new but just a more efficient way to manage the marketing communicat

ion tools (Kitchen amp Schultz 2009) In order to convey the messages clearly it is nec

essary for the customers to see and hear the same message This could be achieved onl

y if the different marketing communication tools support each-other

As we all know the company of Samsung owns more than $117 billion revenue in 20

11 with global technology (wwwsamsungcom) so much evidence about the integrati

on of the different communication tools could be found First the logo and the key me

ssages are globally standardized The Galaxy S tablet message is similar ndash ldquofreedomrdquo

17 25

ldquolive without limitsrdquo Other similar messages related to the feeling of being free are al

so attached to Galaxy S tablet worldwide

There is also a powerful integration between the different marketing communication t

ools and media For example integration between traditional and online media In ma

ny countries all sales promotions are integrated with direct marketing ndash customers are

required to provide their basic details and e-mails Social media is also very well integ

rated with sales promotions Print adverts are also integrated with sales promotion and

direct to the Samsung website

In an company such as Samsung the main thing creating difficulties is its size It is dif

ficult to co-ordinate the marketing activities in a company with nearly 160 000 emplo

yees Samsung has several official websites ndash the main site (Samsungcom) a site dev

oted only to mobile phone users in specific countries This could lead to confusion for

the customer and currently Samsung is merging these local sites with its global websit

e

18 25

References

Wall Street Journal (2009) Motorola Executive Helped spur Cellphone Revolution

Wall Street Journal 20ndash21 June 2009 p A10

Funk J 2001 The mobile Internet How Japan dialed up and the West disconnected

Pembroke Bermuda ISI Publications

19 25

Apple 2010 ldquoiPhone Developer Program License Agreementrdquo

httpwwwefforgfiles20100302_iphone_dev_agrpdf

Cusumano Michael 2010 ldquoTechnology Strategy and Management The Evolution of

Platform Thinkingrdquo Communications of the ACM 53 (1) 32-34

Martinez Salazar and Marco Martinez 2010 ldquoThe Mobile Phone User Identifying

Top Mobile Applicationsrdquo (April 1 2010) Available at SSRN

httpssrncomabstract=1691210

P Kotler (1980) Marketing Management 3th Edition Published by Prentice

Kotler P Armstrong G Saunders J And Wong V (1999) Principles of Marketing

2nd European edn Pretice- Hall

Denis Adcock Al Halborg and Caroline Ross(2001) Marketing Principles and

Practice 4th edn published by FT Prentice Hall

C Fill (2009) Marketing communications 5th edition Pearson Education

P Kotler (2009) Marketing Management European edition FT Prentice Hall

20 25

Ries A and trout J (1981) Positioning the Battle for Your Mind McGraw- Hall

David Jobber (2006) Principles and Practice of Marketing 6th edn published by

McGraw-Hill

Anderson PH 2001 Relationship development and marketing communication An

integrative model The Journal of Business and Industrial

Pickton D amp Hartley B (1998) Measuring integration an assessment of the quality

of integrated marketing communications International Journal of Advertising

D Schultz amp C Patti (2009) The evolution of IMC IMC in a customer-driven

marketplace Journal of Marketing Communications Vol 15 Nos 2ndash3 AprilndashJuly

2009 pp 75ndash84

L Percy (2008) Strategic integrated marketing communication theory and practice

Butterworth Heinemann

F Brassington amp S Pettitt (2007) Essentials of Marketing second edn FT Prentice

Hall

Spreng RA and Mackoy RD (1996) An empirical examination of a model of

21 25

perceived service quality and satisfaction Journal of Retailing Vol 72 pp 201-14

Shemwell DJ Yavas U and Bilgin Z 11130881998) ``Customer-service provider

relationships an empirical test of a model of service quality satisfaction and

relationship oriented outcome International Journal of Service Industry

Management Vol 9 pp 155-68

Newman K and Pyne T (1996) Quality matters junior doctorsrsquo perceptions

Journal of Management in Medicine Vol 10 No 4 pp 12-23

Morrison J(2006) The International Business Environment 2nd edition Published

by Palgrave MacMillan

Baker J (2007) Marketing strategy and management Publisher Palgrave Macmillan

Blythe J (2006) Marketing Published by SAGE

Egan J (2007) Marketing communications Published by Thomson Learning

Finne amp Gronroos (2009) ldquoRethinking marketing communication From integrated

marketing communication to relationship communicationrdquo Journal of Marketing

Communications Vol 15 Nos 2ndash3 AprilndashJuly 2009 179ndash195

22 25

Kotler P et al (2005) Principles of marketing 4th edition Publisher Pearson

Education

London Butterworth-Heinemann

Kotler P (2003) Marketing management 11th edition Publisher Pearson Education

Kim I Han D amp Schultz D (2004) ldquoUnderstanding the Diffusion of Integrated

Marketing Communicationsrdquo Journal of Advertising Research March 2004 pp 31-45

Kitchen P amp Schultz D (2009) ldquoIMC New horizonfalse dawn for a marketplace in

turmoilrdquo Journal of Marketing Communications Vol 15 Nos 2ndash3 AprilndashJuly

2009 197ndash204

Pickton D amp Broderick A (2005) Integrated Marketing Communications 2nd edition

Publisher Pearson Education

Russell E The fundamentals of marketing Publisher AVA Academia

httpnewscnetcom

23 25

httpwwwecirclecom

httpwwwyoutubecom

httpchroniclingamericalocgovlccnsn850424621906-05-21ed-1seq-7

httpwwwmsnbcmsncomid7432915nstechnology_and_science-wirelesstfirst-

cell-phone-true-brickT2o-y3mP5JE

httpwwwumtsworldcomumtshistoryhtm

Mobile market httpwwwgartnercomitpagejspid=1455314

httpwwwsamsungcom

24 25

  1. Widget PGBM 15 Marketing Management
Page 19: PGBM 15 Marketing Management

ldquolive without limitsrdquo Other similar messages related to the feeling of being free are al

so attached to Galaxy S tablet worldwide

There is also a powerful integration between the different marketing communication t

ools and media For example integration between traditional and online media In ma

ny countries all sales promotions are integrated with direct marketing ndash customers are

required to provide their basic details and e-mails Social media is also very well integ

rated with sales promotions Print adverts are also integrated with sales promotion and

direct to the Samsung website

In an company such as Samsung the main thing creating difficulties is its size It is dif

ficult to co-ordinate the marketing activities in a company with nearly 160 000 emplo

yees Samsung has several official websites ndash the main site (Samsungcom) a site dev

oted only to mobile phone users in specific countries This could lead to confusion for

the customer and currently Samsung is merging these local sites with its global websit

e

18 25

References

Wall Street Journal (2009) Motorola Executive Helped spur Cellphone Revolution

Wall Street Journal 20ndash21 June 2009 p A10

Funk J 2001 The mobile Internet How Japan dialed up and the West disconnected

Pembroke Bermuda ISI Publications

19 25

Apple 2010 ldquoiPhone Developer Program License Agreementrdquo

httpwwwefforgfiles20100302_iphone_dev_agrpdf

Cusumano Michael 2010 ldquoTechnology Strategy and Management The Evolution of

Platform Thinkingrdquo Communications of the ACM 53 (1) 32-34

Martinez Salazar and Marco Martinez 2010 ldquoThe Mobile Phone User Identifying

Top Mobile Applicationsrdquo (April 1 2010) Available at SSRN

httpssrncomabstract=1691210

P Kotler (1980) Marketing Management 3th Edition Published by Prentice

Kotler P Armstrong G Saunders J And Wong V (1999) Principles of Marketing

2nd European edn Pretice- Hall

Denis Adcock Al Halborg and Caroline Ross(2001) Marketing Principles and

Practice 4th edn published by FT Prentice Hall

C Fill (2009) Marketing communications 5th edition Pearson Education

P Kotler (2009) Marketing Management European edition FT Prentice Hall

20 25

Ries A and trout J (1981) Positioning the Battle for Your Mind McGraw- Hall

David Jobber (2006) Principles and Practice of Marketing 6th edn published by

McGraw-Hill

Anderson PH 2001 Relationship development and marketing communication An

integrative model The Journal of Business and Industrial

Pickton D amp Hartley B (1998) Measuring integration an assessment of the quality

of integrated marketing communications International Journal of Advertising

D Schultz amp C Patti (2009) The evolution of IMC IMC in a customer-driven

marketplace Journal of Marketing Communications Vol 15 Nos 2ndash3 AprilndashJuly

2009 pp 75ndash84

L Percy (2008) Strategic integrated marketing communication theory and practice

Butterworth Heinemann

F Brassington amp S Pettitt (2007) Essentials of Marketing second edn FT Prentice

Hall

Spreng RA and Mackoy RD (1996) An empirical examination of a model of

21 25

perceived service quality and satisfaction Journal of Retailing Vol 72 pp 201-14

Shemwell DJ Yavas U and Bilgin Z 11130881998) ``Customer-service provider

relationships an empirical test of a model of service quality satisfaction and

relationship oriented outcome International Journal of Service Industry

Management Vol 9 pp 155-68

Newman K and Pyne T (1996) Quality matters junior doctorsrsquo perceptions

Journal of Management in Medicine Vol 10 No 4 pp 12-23

Morrison J(2006) The International Business Environment 2nd edition Published

by Palgrave MacMillan

Baker J (2007) Marketing strategy and management Publisher Palgrave Macmillan

Blythe J (2006) Marketing Published by SAGE

Egan J (2007) Marketing communications Published by Thomson Learning

Finne amp Gronroos (2009) ldquoRethinking marketing communication From integrated

marketing communication to relationship communicationrdquo Journal of Marketing

Communications Vol 15 Nos 2ndash3 AprilndashJuly 2009 179ndash195

22 25

Kotler P et al (2005) Principles of marketing 4th edition Publisher Pearson

Education

London Butterworth-Heinemann

Kotler P (2003) Marketing management 11th edition Publisher Pearson Education

Kim I Han D amp Schultz D (2004) ldquoUnderstanding the Diffusion of Integrated

Marketing Communicationsrdquo Journal of Advertising Research March 2004 pp 31-45

Kitchen P amp Schultz D (2009) ldquoIMC New horizonfalse dawn for a marketplace in

turmoilrdquo Journal of Marketing Communications Vol 15 Nos 2ndash3 AprilndashJuly

2009 197ndash204

Pickton D amp Broderick A (2005) Integrated Marketing Communications 2nd edition

Publisher Pearson Education

Russell E The fundamentals of marketing Publisher AVA Academia

httpnewscnetcom

23 25

httpwwwecirclecom

httpwwwyoutubecom

httpchroniclingamericalocgovlccnsn850424621906-05-21ed-1seq-7

httpwwwmsnbcmsncomid7432915nstechnology_and_science-wirelesstfirst-

cell-phone-true-brickT2o-y3mP5JE

httpwwwumtsworldcomumtshistoryhtm

Mobile market httpwwwgartnercomitpagejspid=1455314

httpwwwsamsungcom

24 25

  1. Widget PGBM 15 Marketing Management
Page 20: PGBM 15 Marketing Management

References

Wall Street Journal (2009) Motorola Executive Helped spur Cellphone Revolution

Wall Street Journal 20ndash21 June 2009 p A10

Funk J 2001 The mobile Internet How Japan dialed up and the West disconnected

Pembroke Bermuda ISI Publications

19 25

Apple 2010 ldquoiPhone Developer Program License Agreementrdquo

httpwwwefforgfiles20100302_iphone_dev_agrpdf

Cusumano Michael 2010 ldquoTechnology Strategy and Management The Evolution of

Platform Thinkingrdquo Communications of the ACM 53 (1) 32-34

Martinez Salazar and Marco Martinez 2010 ldquoThe Mobile Phone User Identifying

Top Mobile Applicationsrdquo (April 1 2010) Available at SSRN

httpssrncomabstract=1691210

P Kotler (1980) Marketing Management 3th Edition Published by Prentice

Kotler P Armstrong G Saunders J And Wong V (1999) Principles of Marketing

2nd European edn Pretice- Hall

Denis Adcock Al Halborg and Caroline Ross(2001) Marketing Principles and

Practice 4th edn published by FT Prentice Hall

C Fill (2009) Marketing communications 5th edition Pearson Education

P Kotler (2009) Marketing Management European edition FT Prentice Hall

20 25

Ries A and trout J (1981) Positioning the Battle for Your Mind McGraw- Hall

David Jobber (2006) Principles and Practice of Marketing 6th edn published by

McGraw-Hill

Anderson PH 2001 Relationship development and marketing communication An

integrative model The Journal of Business and Industrial

Pickton D amp Hartley B (1998) Measuring integration an assessment of the quality

of integrated marketing communications International Journal of Advertising

D Schultz amp C Patti (2009) The evolution of IMC IMC in a customer-driven

marketplace Journal of Marketing Communications Vol 15 Nos 2ndash3 AprilndashJuly

2009 pp 75ndash84

L Percy (2008) Strategic integrated marketing communication theory and practice

Butterworth Heinemann

F Brassington amp S Pettitt (2007) Essentials of Marketing second edn FT Prentice

Hall

Spreng RA and Mackoy RD (1996) An empirical examination of a model of

21 25

perceived service quality and satisfaction Journal of Retailing Vol 72 pp 201-14

Shemwell DJ Yavas U and Bilgin Z 11130881998) ``Customer-service provider

relationships an empirical test of a model of service quality satisfaction and

relationship oriented outcome International Journal of Service Industry

Management Vol 9 pp 155-68

Newman K and Pyne T (1996) Quality matters junior doctorsrsquo perceptions

Journal of Management in Medicine Vol 10 No 4 pp 12-23

Morrison J(2006) The International Business Environment 2nd edition Published

by Palgrave MacMillan

Baker J (2007) Marketing strategy and management Publisher Palgrave Macmillan

Blythe J (2006) Marketing Published by SAGE

Egan J (2007) Marketing communications Published by Thomson Learning

Finne amp Gronroos (2009) ldquoRethinking marketing communication From integrated

marketing communication to relationship communicationrdquo Journal of Marketing

Communications Vol 15 Nos 2ndash3 AprilndashJuly 2009 179ndash195

22 25

Kotler P et al (2005) Principles of marketing 4th edition Publisher Pearson

Education

London Butterworth-Heinemann

Kotler P (2003) Marketing management 11th edition Publisher Pearson Education

Kim I Han D amp Schultz D (2004) ldquoUnderstanding the Diffusion of Integrated

Marketing Communicationsrdquo Journal of Advertising Research March 2004 pp 31-45

Kitchen P amp Schultz D (2009) ldquoIMC New horizonfalse dawn for a marketplace in

turmoilrdquo Journal of Marketing Communications Vol 15 Nos 2ndash3 AprilndashJuly

2009 197ndash204

Pickton D amp Broderick A (2005) Integrated Marketing Communications 2nd edition

Publisher Pearson Education

Russell E The fundamentals of marketing Publisher AVA Academia

httpnewscnetcom

23 25

httpwwwecirclecom

httpwwwyoutubecom

httpchroniclingamericalocgovlccnsn850424621906-05-21ed-1seq-7

httpwwwmsnbcmsncomid7432915nstechnology_and_science-wirelesstfirst-

cell-phone-true-brickT2o-y3mP5JE

httpwwwumtsworldcomumtshistoryhtm

Mobile market httpwwwgartnercomitpagejspid=1455314

httpwwwsamsungcom

24 25

  1. Widget PGBM 15 Marketing Management
Page 21: PGBM 15 Marketing Management

Apple 2010 ldquoiPhone Developer Program License Agreementrdquo

httpwwwefforgfiles20100302_iphone_dev_agrpdf

Cusumano Michael 2010 ldquoTechnology Strategy and Management The Evolution of

Platform Thinkingrdquo Communications of the ACM 53 (1) 32-34

Martinez Salazar and Marco Martinez 2010 ldquoThe Mobile Phone User Identifying

Top Mobile Applicationsrdquo (April 1 2010) Available at SSRN

httpssrncomabstract=1691210

P Kotler (1980) Marketing Management 3th Edition Published by Prentice

Kotler P Armstrong G Saunders J And Wong V (1999) Principles of Marketing

2nd European edn Pretice- Hall

Denis Adcock Al Halborg and Caroline Ross(2001) Marketing Principles and

Practice 4th edn published by FT Prentice Hall

C Fill (2009) Marketing communications 5th edition Pearson Education

P Kotler (2009) Marketing Management European edition FT Prentice Hall

20 25

Ries A and trout J (1981) Positioning the Battle for Your Mind McGraw- Hall

David Jobber (2006) Principles and Practice of Marketing 6th edn published by

McGraw-Hill

Anderson PH 2001 Relationship development and marketing communication An

integrative model The Journal of Business and Industrial

Pickton D amp Hartley B (1998) Measuring integration an assessment of the quality

of integrated marketing communications International Journal of Advertising

D Schultz amp C Patti (2009) The evolution of IMC IMC in a customer-driven

marketplace Journal of Marketing Communications Vol 15 Nos 2ndash3 AprilndashJuly

2009 pp 75ndash84

L Percy (2008) Strategic integrated marketing communication theory and practice

Butterworth Heinemann

F Brassington amp S Pettitt (2007) Essentials of Marketing second edn FT Prentice

Hall

Spreng RA and Mackoy RD (1996) An empirical examination of a model of

21 25

perceived service quality and satisfaction Journal of Retailing Vol 72 pp 201-14

Shemwell DJ Yavas U and Bilgin Z 11130881998) ``Customer-service provider

relationships an empirical test of a model of service quality satisfaction and

relationship oriented outcome International Journal of Service Industry

Management Vol 9 pp 155-68

Newman K and Pyne T (1996) Quality matters junior doctorsrsquo perceptions

Journal of Management in Medicine Vol 10 No 4 pp 12-23

Morrison J(2006) The International Business Environment 2nd edition Published

by Palgrave MacMillan

Baker J (2007) Marketing strategy and management Publisher Palgrave Macmillan

Blythe J (2006) Marketing Published by SAGE

Egan J (2007) Marketing communications Published by Thomson Learning

Finne amp Gronroos (2009) ldquoRethinking marketing communication From integrated

marketing communication to relationship communicationrdquo Journal of Marketing

Communications Vol 15 Nos 2ndash3 AprilndashJuly 2009 179ndash195

22 25

Kotler P et al (2005) Principles of marketing 4th edition Publisher Pearson

Education

London Butterworth-Heinemann

Kotler P (2003) Marketing management 11th edition Publisher Pearson Education

Kim I Han D amp Schultz D (2004) ldquoUnderstanding the Diffusion of Integrated

Marketing Communicationsrdquo Journal of Advertising Research March 2004 pp 31-45

Kitchen P amp Schultz D (2009) ldquoIMC New horizonfalse dawn for a marketplace in

turmoilrdquo Journal of Marketing Communications Vol 15 Nos 2ndash3 AprilndashJuly

2009 197ndash204

Pickton D amp Broderick A (2005) Integrated Marketing Communications 2nd edition

Publisher Pearson Education

Russell E The fundamentals of marketing Publisher AVA Academia

httpnewscnetcom

23 25

httpwwwecirclecom

httpwwwyoutubecom

httpchroniclingamericalocgovlccnsn850424621906-05-21ed-1seq-7

httpwwwmsnbcmsncomid7432915nstechnology_and_science-wirelesstfirst-

cell-phone-true-brickT2o-y3mP5JE

httpwwwumtsworldcomumtshistoryhtm

Mobile market httpwwwgartnercomitpagejspid=1455314

httpwwwsamsungcom

24 25

  1. Widget PGBM 15 Marketing Management
Page 22: PGBM 15 Marketing Management

Ries A and trout J (1981) Positioning the Battle for Your Mind McGraw- Hall

David Jobber (2006) Principles and Practice of Marketing 6th edn published by

McGraw-Hill

Anderson PH 2001 Relationship development and marketing communication An

integrative model The Journal of Business and Industrial

Pickton D amp Hartley B (1998) Measuring integration an assessment of the quality

of integrated marketing communications International Journal of Advertising

D Schultz amp C Patti (2009) The evolution of IMC IMC in a customer-driven

marketplace Journal of Marketing Communications Vol 15 Nos 2ndash3 AprilndashJuly

2009 pp 75ndash84

L Percy (2008) Strategic integrated marketing communication theory and practice

Butterworth Heinemann

F Brassington amp S Pettitt (2007) Essentials of Marketing second edn FT Prentice

Hall

Spreng RA and Mackoy RD (1996) An empirical examination of a model of

21 25

perceived service quality and satisfaction Journal of Retailing Vol 72 pp 201-14

Shemwell DJ Yavas U and Bilgin Z 11130881998) ``Customer-service provider

relationships an empirical test of a model of service quality satisfaction and

relationship oriented outcome International Journal of Service Industry

Management Vol 9 pp 155-68

Newman K and Pyne T (1996) Quality matters junior doctorsrsquo perceptions

Journal of Management in Medicine Vol 10 No 4 pp 12-23

Morrison J(2006) The International Business Environment 2nd edition Published

by Palgrave MacMillan

Baker J (2007) Marketing strategy and management Publisher Palgrave Macmillan

Blythe J (2006) Marketing Published by SAGE

Egan J (2007) Marketing communications Published by Thomson Learning

Finne amp Gronroos (2009) ldquoRethinking marketing communication From integrated

marketing communication to relationship communicationrdquo Journal of Marketing

Communications Vol 15 Nos 2ndash3 AprilndashJuly 2009 179ndash195

22 25

Kotler P et al (2005) Principles of marketing 4th edition Publisher Pearson

Education

London Butterworth-Heinemann

Kotler P (2003) Marketing management 11th edition Publisher Pearson Education

Kim I Han D amp Schultz D (2004) ldquoUnderstanding the Diffusion of Integrated

Marketing Communicationsrdquo Journal of Advertising Research March 2004 pp 31-45

Kitchen P amp Schultz D (2009) ldquoIMC New horizonfalse dawn for a marketplace in

turmoilrdquo Journal of Marketing Communications Vol 15 Nos 2ndash3 AprilndashJuly

2009 197ndash204

Pickton D amp Broderick A (2005) Integrated Marketing Communications 2nd edition

Publisher Pearson Education

Russell E The fundamentals of marketing Publisher AVA Academia

httpnewscnetcom

23 25

httpwwwecirclecom

httpwwwyoutubecom

httpchroniclingamericalocgovlccnsn850424621906-05-21ed-1seq-7

httpwwwmsnbcmsncomid7432915nstechnology_and_science-wirelesstfirst-

cell-phone-true-brickT2o-y3mP5JE

httpwwwumtsworldcomumtshistoryhtm

Mobile market httpwwwgartnercomitpagejspid=1455314

httpwwwsamsungcom

24 25

  1. Widget PGBM 15 Marketing Management
Page 23: PGBM 15 Marketing Management

perceived service quality and satisfaction Journal of Retailing Vol 72 pp 201-14

Shemwell DJ Yavas U and Bilgin Z 11130881998) ``Customer-service provider

relationships an empirical test of a model of service quality satisfaction and

relationship oriented outcome International Journal of Service Industry

Management Vol 9 pp 155-68

Newman K and Pyne T (1996) Quality matters junior doctorsrsquo perceptions

Journal of Management in Medicine Vol 10 No 4 pp 12-23

Morrison J(2006) The International Business Environment 2nd edition Published

by Palgrave MacMillan

Baker J (2007) Marketing strategy and management Publisher Palgrave Macmillan

Blythe J (2006) Marketing Published by SAGE

Egan J (2007) Marketing communications Published by Thomson Learning

Finne amp Gronroos (2009) ldquoRethinking marketing communication From integrated

marketing communication to relationship communicationrdquo Journal of Marketing

Communications Vol 15 Nos 2ndash3 AprilndashJuly 2009 179ndash195

22 25

Kotler P et al (2005) Principles of marketing 4th edition Publisher Pearson

Education

London Butterworth-Heinemann

Kotler P (2003) Marketing management 11th edition Publisher Pearson Education

Kim I Han D amp Schultz D (2004) ldquoUnderstanding the Diffusion of Integrated

Marketing Communicationsrdquo Journal of Advertising Research March 2004 pp 31-45

Kitchen P amp Schultz D (2009) ldquoIMC New horizonfalse dawn for a marketplace in

turmoilrdquo Journal of Marketing Communications Vol 15 Nos 2ndash3 AprilndashJuly

2009 197ndash204

Pickton D amp Broderick A (2005) Integrated Marketing Communications 2nd edition

Publisher Pearson Education

Russell E The fundamentals of marketing Publisher AVA Academia

httpnewscnetcom

23 25

httpwwwecirclecom

httpwwwyoutubecom

httpchroniclingamericalocgovlccnsn850424621906-05-21ed-1seq-7

httpwwwmsnbcmsncomid7432915nstechnology_and_science-wirelesstfirst-

cell-phone-true-brickT2o-y3mP5JE

httpwwwumtsworldcomumtshistoryhtm

Mobile market httpwwwgartnercomitpagejspid=1455314

httpwwwsamsungcom

24 25

  1. Widget PGBM 15 Marketing Management
Page 24: PGBM 15 Marketing Management

Kotler P et al (2005) Principles of marketing 4th edition Publisher Pearson

Education

London Butterworth-Heinemann

Kotler P (2003) Marketing management 11th edition Publisher Pearson Education

Kim I Han D amp Schultz D (2004) ldquoUnderstanding the Diffusion of Integrated

Marketing Communicationsrdquo Journal of Advertising Research March 2004 pp 31-45

Kitchen P amp Schultz D (2009) ldquoIMC New horizonfalse dawn for a marketplace in

turmoilrdquo Journal of Marketing Communications Vol 15 Nos 2ndash3 AprilndashJuly

2009 197ndash204

Pickton D amp Broderick A (2005) Integrated Marketing Communications 2nd edition

Publisher Pearson Education

Russell E The fundamentals of marketing Publisher AVA Academia

httpnewscnetcom

23 25

httpwwwecirclecom

httpwwwyoutubecom

httpchroniclingamericalocgovlccnsn850424621906-05-21ed-1seq-7

httpwwwmsnbcmsncomid7432915nstechnology_and_science-wirelesstfirst-

cell-phone-true-brickT2o-y3mP5JE

httpwwwumtsworldcomumtshistoryhtm

Mobile market httpwwwgartnercomitpagejspid=1455314

httpwwwsamsungcom

24 25

  1. Widget PGBM 15 Marketing Management
Page 25: PGBM 15 Marketing Management

httpwwwecirclecom

httpwwwyoutubecom

httpchroniclingamericalocgovlccnsn850424621906-05-21ed-1seq-7

httpwwwmsnbcmsncomid7432915nstechnology_and_science-wirelesstfirst-

cell-phone-true-brickT2o-y3mP5JE

httpwwwumtsworldcomumtshistoryhtm

Mobile market httpwwwgartnercomitpagejspid=1455314

httpwwwsamsungcom

24 25

  1. Widget PGBM 15 Marketing Management